Any paperwork needed to take out money from soletrading acc?

[sunjay]

I've posted this question in my previous thread but did not get any reply. May be I should've posted a new thread.

Do I need to maintain any paperwork/record if I want to take out money from my sole trading business account? After I recieve any payment from my client's, can I just take some money out as cash or transfer(online transfer) it to my personall account for my personal expenses?

Thanks for all your replies.

[ChetanOjha]

I've posted this question in my previous thread but did not get any reply. May be I should've posted a new thread.

Do I need to maintain any paperwork/record if I want to take out money from my sole trading business account? After I recieve any payment from my client's, can I just take some money out as cash or transfer(online transfer) it to my personall account for my personal expenses?

Thanks for all your replies.

You can pay yourself salary. But you cannot take money out from your business account for personal use. You can show that as reimbursment to some expenses etc.

[sunjay]

You can pay yourself salary. But you cannot take money out from your business account for personal use. You can show that as reimbursment to some expenses etc.

It's a sole trading account. Both HMRC and HO does not require sole traders to have a business account as far as I know. I opened a business account as I had some problems with my personal account recently when taking payments in cheque and my Tier 1 application was refused (please see my previous thread regarding this: http://www.immigrationboards.com/viewtopic.php?t=46233 ).

I'm extremely sorry if I sound like dumb, if I want to pay myself a salary then exactly how do I do that? Can you please explain in details as I never studied business and not familiar at all with most business terms and procedures.

Thanks for your reply.

[Sushil-ACCA]

Sanjay

u need to take HO (visa) and HMRC (tAX -COST ) to sort out yr issue.


it depends upon yr points requiemts in earning area

present earning from employment and sole trader income, a combination of both cant sort out yr visa requirement and less cost from tax point of u

if u give us some info we can / i can guide u here , rest decision is yrs

when yr last date for visa so u can have right structure of business , sole trader / company structre

[MITM2]

Hi Senior Members,

May I respectfully ask if some more light can be shed on the workings of being a Sole Trader vis-a-vis claiming points for income earned in this line of work?

As I mentioned in a previous post, so much has been written about Limited companies but very little about Sole Trading or Sole Traders...and I daresay that there're quite a number of us out there who are Sole Traders.

As such, can some light please be shed on the following...

i. I work full time as a Sole Trader and it is from this source of income that I pay my bills and run my life generally. I keep track of my work-related expenses like my travel cards and stationery primarily. I don't pay myself a salary but spend my income to run my day-to-day requirements. Any issues with this?

2. In claiming points for my earnings as a Sole Trader, what are the documents or requirements I ned to submit when applying for my extension?

3. Do I need to list the names and addresses of each and every single person that has paid money into my account? There is a place in the extension form where it's requested that contact details for 'all' sources of income claimed should be listed

Thank you very much in anticipation of the point-blank answers to these questions.

Regards,

MITM2

[MITM2]

Sorry, I forgot to add that I'm registered with HMRC as a Sole Trader and have been paying my quarterly Class 2 NI Contributions.

Also, I started the Sole Trader biz in January...is it true I have to be at least 12 months in business before I can pay tax on my earnings?

Thank you.

MITM2

[Sushil-ACCA]

SOLE trader year end on every march of year

company 12 months every year , ist year can be of 18 months

[Sushil-ACCA]

Hi Senior Members,

May I respectfully ask if some more light can be shed on the workings of being a Sole Trader vis-a-vis claiming points for income earned in this line of work?

As I mentioned in a previous post, so much has been written about Limited companies but very little about Sole Trading or Sole Traders...and I daresay that there're quite a number of us out there who are Sole Traders.

As such, can some light please be shed on the following...

i. I work full time as a Sole Trader and it is from this source of income that I pay my bills and run my life generally. I keep track of my work-related expenses like my travel cards and stationery primarily. I don't pay myself a salary but spend my income to run my day-to-day requirements. Any issues with this?

2. In claiming points for my earnings as a Sole Trader, what are the documents or requirements I ned to submit when applying for my extension?


1. Accounts PL & BS
2. Income certificate
3. Sakes summary


3. Do I need to list the names and addresses of each and every single person that has paid money into my account? There is a place in the extension form where it's requested that contact details for 'all' sources of income claimed should be listed

yes for safer side


Thank you very much in anticipation of the point-blank answers to these questions.

Regards,

MITM2

[Sushil-ACCA]

Unaudited Financial Statements for the Period 1 April 2009 to 31 July 2009

for Choudermet Education & Consultancy

Choudermet Education & Consultancy















Contents of the Financial Statements
for the Period 1 April 2009 to 31 July 2009




Page

General Information 1

Accountants' Report and Client Approval Certificate
2

Profit and Loss Account 3

Balance Sheet 4

Capital Accounts Summary Schedule 5

Tangible Fixed Assets Schedule 6


Choudermet Education & Consultancy

General Information
for the Period 1 April 2009 to 31 July 2009







PROPRIETOR: M D Choudermet





ADDRESS: 26 Buckrose Street
Huddersfield.
HD4 7HB





ACCOUNTANTS: CDOK'S(UK) LIMITED
Chartered Certified Accountants
57-C Scarle Road
Wembley
Middlesex
HA0 4SR





BANKERS: HSBC

Financial Statements

for the Period 1 April 2009 to 31 July 2009




Accountants' Report to

Choudermet Education & Consultancy


In accordance with instructions given to us we have prepared without carrying out an audit the annexed financial statements from the accounting records of Choudermet Education & Consultancy and from information and explanations supplied to us.






CDOK'S(UK) LIMITED
Chartered Certified Accountants
57-C Scarle Road
Wembley
Middlesex
HA0 4SR


Date: .............................................




Client Approval Certificate


I approve the financial statements and confirm that I have made available all relevant records and information for their preparation.




..............................
V D Choudermet


Date: .............................................

Choudermet Education & Consultancy

Profit and Loss Account
for the Period 1 April 2009 to 31 July 2009

£ £

Sales 10,000

Expenditure
Advertising 105
Travelling 80
Accountancy 115
Depreciation of tangible fixed assets
Computer equipment 100
400

NET PROFIT 9,600


Choudermet Education & Consultancy

Balance Sheet
31 July 2009

£ £

FIXED ASSETS
Computer equipment 300

CURRENT ASSETS
Trade debtors 3,000
Bank account no. 1 1,726
4,726

NET ASSETS 5,026

FINANCED BY

CAPITAL ACCOUNT (4,574)

CURRENT ACCOUNT
Net profit 9,600

5,026


Choudermet Education & Consultancy

Capital Accounts Summary Schedule
31 July 2009
Capital
account
£
Capital introduced 700

Less
Withdrawal 5,274

At 31 July 2009 (4,574)


Choudermet Education & Consultancy

Tangible Fixed Assets Schedule
31 July 2009

Computer
equipment
£
COST
Additions 400

At 31 July 2009 400

DEPRECIATION
Charge for period 100

At 31 July 2009 100

NET BOOK VALUE
At 31 July 2009 300

[Sushil-ACCA]

DRAFT

this is fine

add 2 more colums name and address and contact details for safer side


Sales Summary for Mr. XYZ
Invoice No. Period Worked Payment Received Date Amount £
1 Jun-09 24/07/2009 530
2 Jul-09 02/09/2009 550
3 Jul-09 03/09/2009 500
4 Jul-09 03/09/2009 500
5 Jul-09 20/09/2009 350
6 Jul-09 24/09/2009 1,000
7 Jul-09 25/09/2009 700
9 Jul-09 29/09/2009 500
9 Jul-09 29/09/2009 150
10 Aug-09 09/09/2009 2,000
11 Aug-09 10/09/2009 1,000
12 Aug-09 12/09/2009 1,000
13 Aug-09 14/09/2009 500
14 Aug-09 15/09/2009 1,200
15 Aug-09 16/09/2009 500
16 Aug-09 21/09/2009 500
17 Aug-09 21/09/2009 500
19 Sep-09 27/09/2009 1,000
Total 12,990

[Sushil-ACCA]

14th September 2009



Re: Certification of income



This is to certify that Mr. xyz T/A xyz Consultancy have the following taxable income from self employment during the period from 1/01/2009 to 31/08/2009.

Particulars Amount (£)
Gross Sales 9,600.00
Net Income 8,050.00

Profit and Loss Account and sales receipts summary have been attached herewith.

The above income has been certified based on the accounts and information provided to us and the taxes will be paid in due course to HMRC.

Should you need any further clarifications or information’s Please do not hesitate to contact us.

Thanking you


Sushil Dokwal



On accountants letter head for sole trader

[Sushil-ACCA]

For Company accounts

structure is same for sales report

Income certificate have different wording

Accounts will be different than sole trader -as per company act

Dividend vouchers

Regards

I have tried my best to present sole trader one but algnment is issue

still any query write here to sort out

[MITM2]

Hi Sushil-ACCA,

Thank you very much for this great effort to answer the questions posed and to clarify the requirements.

MITM2