Am I Self-Employed And How to Keep the Records About Income? Would a Simple Hand-Written Notes Suffice?

Question

I've asked a question about whether I could be classed as self-employed or not. I am from Germany and I've been working as a freelance translator in London area for the past 3 years (translating from German to English). I have no National Insurance in this country (cos I never needed to apply for one), and I do not do bookkeeping. I just have several permanent clients, and whenever any one of them come to London, they contact me, and I translate for them. I do not operate from an office or home, and I just meet my clients where they want me to come. Some times I don't get any calls for 2,3, 4 days in a row, and sometimes I get to translate 5 days a week (it all depends on luck!). I usually earn about £800 a month, and I ALWAYS get paid in cash.
Now someone said "failing to have evidence of your turnover can be just as bad as pretending it doesn't exist. What if the taxman says Aha! but you might have been making £8000 a month! Eh? Eh?? Keep Good Records." But HOW do I keep records?

Answer 1

Buy a double ledger book from office world, in the front of the book put all your expense's including the receipt for the book add anything you buy for the business including fuel road tax books and anything involved with the business, keep all receipts (shoe box is fine). entry i.e insurance..............£55. use one page per month.
In the back of the double ledger put all income from your business. i.e translation Mr Hans Krupp..............£250
if you have figures and receipts the taxman cannot make up a figure that he thinks you owe, with no accounts you leave yourself open to his discretion and that can be very expensive.Also i do think you need National insurance no, not sure how you go about that, but if you contact your local tax office, I'm sure they will point you in the right direction. And get an accountant, as he/she will know how to claim all your allowance's if your not into book keeping then you can let the accountant do it, but this will increase your fee;s (but that tax deductible too)

Answer 2

Do remember that - if you are tempted to do nothing - your work will show as an entry in your clients books and though it's tedious the taxman could get a lot of information from them. I suspect that you do need NI and you certainly should have registered with HM Revenue and Customs as self employed. If you have not there could be penalties!

Answer 3

You are using your computer to post this question. Have you got Microsoft Excel or Lotus?
If so set up a simple account file showing the client name, date of invoice and total amount received.
Also, keep a record of you expenses, eg paper, travel, hotel bills etc.
Always issue an invoice and keep a copy in your file.
This will take very little maintenance and should be sufficient for a small business

Answer 4

on the grounds which you're required via regulation to pay Quarterly Estimate Taxes by the three hundred and sixty 5 days you have already got a EIN or you have been utilising your Social secure practices selection. money have been due April 15, June 15, Sept 15 and final one Jan 15.

Answer 5

Write receipts for all cash received. File them away. Get an accounting book and put down all the people you serviced and the money that you received from them. This will also help you keep track of unpaid services.

Hope this helps!

Answer 6

first of all u could get a receipt book in which u & the receiptmants have to sign or you could get a journal/ledger and record all your transaction to them that way can keep records of the business ,also if u have the time u coyuld buy the quick book software that ought to hel-p

Answer 7

you are self employed and you should invoice the client just make sure you number them date them and put the amount, you should also phone the tax office and tell them you are self employed.

Answer 8

Take an accounting course & buy sage software