Most of the stress of a tax return comes from looking for things. Keep these five records as you go, and the return takes an afternoon.
1. Every sale
An invoice or a receipt for everything you are paid, numbered in order. A card reader's monthly statement counts.
2. Every cost
A receipt for anything you buy for the business. A photograph is enough: HMRC accepts a clear picture of the original.
3. Your bank statements
Keep a separate account for the business. It is not a legal requirement for a sole trader, but it halves the time your bookkeeping takes.
4. Mileage
If you use your own car for work, a log of the date, the journey and the miles. The simplified rate is worth claiming.
| Business miles in the year | Rate per mile |
| --- | ---: |
| First 10,000 | 45p |
| Above 10,000 | 25p |
5. Anything from HMRC
Letters, payment reminders and your Unique Taxpayer Reference. Keep everything for at least five years after the 31 January filing deadline of the year it belongs to.
The one habit: once a week, ten minutes, every receipt photographed and every invoice sent. It is the cheapest accountant you will ever have.
