PDA

View Full Version : Keeping records question



Seahorse
16-06-2008, 07:34 PM
Ive never been clear on a certain part of keeping a record of incomings outgoings.

eg
Item 10
p+p 2

total 12

Do I record all the 12 as incoming then when I post it, record the 1.14 (for example)stamp as an outgoing.

Poppy4lee
16-06-2008, 07:49 PM
Ive never been clear on a certain part of keeping a record of incomings outgoings.

eg
Item 10
p+p 2

total 12

Do I record all the 12 as incoming then when I post it, record the 1.14 (for example)stamp as an outgoing.

That's what I do. :)

swirlyarts
16-06-2008, 11:33 PM
Yep that's the right thing to do!

kipper workshops
16-06-2008, 11:50 PM
Yep, I agree.

Just think in two ways:

1. Log whatever money comes in - from any source!
2. Log whatever money goes out - for any kind of expense!

Stick with that and your taxman will be pretty happy!

Steve :):)

Seahorse
17-06-2008, 10:27 AM
Coolio, thanks.

So when I get paid through paypal, I record the amount I take after paypal have taken their chunk of it?

0103media
17-06-2008, 10:53 AM
Coolio, thanks.

So when I get paid through paypal, I record the amount I take after paypal have taken their chunk of it?

NO..

You charge 100
You pay tax on the 100

You put against tax the banking charge e.g. 2.50 to paypal..

newcrafter24
17-06-2008, 01:24 PM
Not sure if I agree with this: Surely you only pay tax on PROFIT not INCOME, ie. if you charge 100 minus the 2.50 charge to Paypal, then your profit for that sale is only 97.50. You might then have other overheads that total say 50.00 (cost of materials etc.) which would drop your profit to 47.50. You would only pay income tax on the 47.50, not the original 100 selling price.

To keep your records right in this case, you would show 100 as income and 2.50 as expenditure.



NO..

You charge 100
You pay tax on the 100

You put against tax the banking charge e.g. 2.50 to paypal..