Everyone running a business has an obligation to keep up to date records of their finances to satisfy tax law. However, not everyone has accounting or record keeping skills or are organised enough to keep on top of the task. Neil explains the basics of what is required for you to be able to rest assured that you are covering all the legal bases.

 

KEY TAKEAWAYS

• Please don’t ignore these requirements as ignorance is no defence against the tax man.
• Consider your business as separate from yourself. Business money and personal money should be kept apart.
• Keep basic records as you go. Keep it simple, just a monthly A4 page or spreadsheet.

BEST MOMENTS

‘Johnny tax man is armed to the teeth and can make your life hell if you ever get on the wrong side of him.’

‘The first thing I want you to do is open a separate bank account that’s just for your tutoring money. If you’re a sole trader you can use a simple personal bank account for free and there are some free business banks out there.’ 

‘Once a year I will also add an extra entry on to the cash sheet which is the HMRC yearly allowance for home use.’

VALUABLE RESOURCES

The Tutor Podcast

 www.Neilcowmeadow.com

ABOUT THE HOST

Neil Cowmeadow is a maverick peripatetic guitar teacher from Telford with over 19 years’ experience in the business of helping people. Learn how to start, grow and love your business with Neil’s invaluable advice and tips without the buzzwords and BS!

CONTACT METHOD

[email protected]