Recording cash received from clients

If you receive cash from clients then this is really important

If clients pay you in cash then you need to have  supporting evidence to show HMRC in the event of a tax enquiry, even if you bank all the cash received.

A booking diary or excel sheet is a useful way to support the cash income, the date, name or initials , the length of the appointment and the fee charged. Ideally a reconciliation of the cash received less cash taken out to agree to cash banked.

Remember if you have a tax enquiry HMRC will be looking to see if they can find evidence that takings were not recorded, especially in cash , so a record of some sort is essential.

 

HMRC, self employed, Self employment, tax for self employed, therapists

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