Tag Archive for: expenses

Bookkeeping Checklist Before Closing for Christmas

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A simple bookkeeping checklist can help you finish the year organised and steady, making January feel much less overwhelming.

Mid-December often feels chaotic. In some areas, work slows down, while in others, it speeds up. People are trying to complete tasks, respond to final emails, and prepare for the upcoming break. Bookkeeping is one of those responsibilities that can easily get pushed aside until everything becomes last-minute. Don’t procrastinate with your bookkeeping!

Check for any remaining invoices that still need sending

At this point in the month, most businesses have already sent out their main December invoices. However, it’s still a good idea to take a moment to check for any smaller items that may have been overlooked. Some examples include recent jobs, small add-ons, or regular monthly services that can sometimes be missed.

Sending these reminders before the break helps maintain tidy cash flow as clients begin to wind down.

Review unpaid invoices

December can lead to delays, as many offices close early or shorten hours. Take the time to review your unpaid invoices and send out gentle reminders now. This will help keep your aged debt low and prevent you from having to chase a long list of overdue accounts in January.

Complete your bank reconciliation

A well-organised set of records at year-end saves time later.

  • Unmatched transactions
  • Duplicate entries
  • Old items that are still pending

If something seems unusual, take the time to address it now while it’s still fresh in your mind.

Capture any missing expenses

December brings small, easily forgotten costs. Staff treats, travel, supplies, and festive items can easily slip through the cracks. Collect receipts, emails, and card statements to ensure you enter everything correctly.

Check payroll and holiday pay

If payroll is part of your month, confirm:

  • Hours worked
  • Overtime
  • Holiday taken
  • Any bonuses or adjustments

Holiday periods sometimes alter pay dates. It helps to check that everything is lined up before the break.

Confirm supplier payments

Review upcoming bills to ensure nothing is overlooked. Paying suppliers promptly prevents disruptions at the start of the new year and provides a clearer picture of your December cash flow.

Back up your records

Protect your accounting data, scanned receipts, and important documents. A quick backup minimises risks during software updates or technical problems when the office is closed.

Plan for your return in January

Create a short list of tasks to complete when you return. It doesn’t need to be extensive; just a few notes to help you transition smoothly into the new year without having to remember what you were working on prior to the break.

These bookkeeping checklist tasks take only a short time but greatly aid your return to work. If this feels overwhelming, consider starting the new year by outsourcing your bookkeeping to Rosemary Bookkeeping.

Find your nearest Rosemary Bookkeeper today.

Festive Expenses You Can Claim Back

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We have made a list and checked it twice of festive expenses that you may claim back as business expenses.

Christmas time can be a busy and expensive time for many businesses, big or small.

But with the January Self-Assessment Tax Return deadline looming, here are some festive expenses that you might not have thought about reclaiming.

Decking the Halls

You may not know that you can claim back decorations such as Christmas trees, tinsel, and wreaths as tax-deductible business expenses by recording them as office running costs. However, this does not apply to employees working from home, as HMRC considers these items to be for personal enjoyment rather than office-related use.

A Christmas Party

You may be eligible to reclaim expenses for a Christmas party, but this depends on who attended and the cost incurred.

If the event is open to all employees and costs less than £150, it will be entirely taxable, regardless of the number of people in your organisation.

You cannot claim expenses if clients or associates attend an event, as HMRC classifies this as business entertainment for corporation tax and VAT purposes. Additionally, if an event is not open to all employees, it will not be eligible for claims either.

Therefore, when inviting clients or associates to a Christmas event, ensure you allocate sufficient funds to cover their expenses, as you will not be able to claim any tax relief or recover any VAT on these costs.

It’s important to record this in your financial records and add the costs back when calculating your profit for tax purposes. However, this applies only if the cost per person for the Christmas party, including VAT, does not exceed £150. If it does exceed this amount, it will be considered a taxable benefit.

Presents

Since it is Christmas, you may consider buying gifts for your staff or clients.

When giving gifts to clients, you can record these expenses as business costs, as long as they adhere to the appropriate guidelines to avoid any implications of bribery.

You don’t have to pay tax on a benefit for your employee if all of the following apply:

  • It costs you £50 or less to provide
  • Cannot give cash or a cash voucher
  • It is not a reward for their efforts or performance.
  • It is not included in the terms of their contract.

This is known as a ‘trivial benefit’. You don’t need to pay tax or National Insurance, or let HM Revenue and Customs (HMRC) know.

More guidance and information on gifts for staff can be found on the HMRC website.

Need help with your finances?

If managing all of this feels overwhelming, consider handing your bookkeeping over to the professionals by reaching out to your nearest Rosemary Bookkeeping business for expert support, advice, and assistance with all your bookkeeping needs.

How to claim without a receipt

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What to do when you lose a receipt.

When it comes to business expenses, keeping a clear record is essential.

Whether it’s an invoice or a payment receipt, you should ideally always have a receipt for every expense you claim. Perhaps you forgot to ask for one, the business didn’t provide one, or it simply got lost.

Don’t panic, all is not lost. In this blog post, the experts at Rosemary Bookkeeping share how to claim without a receipt.

Can You Still Claim Without a Receipt?

Yes, you can still claim legitimate business expenses even if you don’t have a receipt, but you’ll need other evidence to support the claim.

The expense must be necessary for your business operations, and you should record as many details as possible about the transaction. This includes:

  • Who you purchased from
  • When you made the purchase
  • Where the sale took place
  • What you bought and why it was necessary

If you paid via your business bank account, your bank statement can be used as proof of purchase.

For example, if you’ve paid cash for parking while attending a client meeting and the machine didn’t provide a receipt. Instead, you could record:

  • The cost
  • The location
  • The parking company name
  • The date and time

The more detail you capture, the better. A tax inspector will be far more likely to accept the claim if you can clearly show the expense was genuine and necessary.

The Key Takeaway

While a receipt is always best, missing one doesn’t mean you can’t claim. Good record-keeping and alternative evidence can save you stress and money when it comes to your tax return.

Need help with your bookkeeping?

With much more to keep track of throughout the year, you can take some of the stress out of your business operations by leaving your bookkeeping to the professionals.

To learn more about our services and how Rosemary Bookkeeping can help you, call 0345 862 0072 or find your nearest Rosemary Bookkeeper today.

Information on Allowable Expenses

When it comes to carrying out your self-assessment, it’s hard to know what can and can’t be included as allowable expenses. Contrary to popular belief, the government want you to succeed in business so will allow you to spend on certain items in your business without having to pay the tax for them.

In general, tax-deductible items will come under the following categories;

  • Travel
  • Office
  • Stock
  • Marketing
  • Legal & Financial

Travel Costs

fuel expenses

Any business-related car or van use may be allowed. Things such as;

  • Vehicle insurance
  • Fuel
  • Hire charges
  • Repairs
  • Servicing and breakdown cover

You are not able to claim these charges for general use such as driving to and from work but if your vehicle is genuinely used for work purposes, these allowances may be available for you.

It can be difficult to calculate your use if your vehicle is used for both personal and business. In this case, refer to the “simplified vehicle expenses” form on the government website where you will find a flat rate for each circumstance.

Under travel, you may also be able to claim for;

  • Train
  • Bus
  • Plane
  • Taxi
  • Hotel rooms
  • Evening meal during a business trip.

If you are taking a trip but it’s for a combination of personal and business, you will need to calculate how much is used for business and only submit that amount as allowable expenses.

Office Costs

postage expenses

There are many items that can be listed under allowable expenses whether you work from premises or your own home. It’s a little more complicated when you work from home which I will explain later.

The type of things you can possibly include are;

  • Stationary
  • Printing costs (including ink)
  • Postage

You can claim for equipment such as computers, printers and software but this may have to be claimed under your capital allowance if you don’t use cash basis accounting.

With regards to your premises, the following may be allowed;

  • Rent
  • Maintenance & repair
  • Utility bills
  • Property insurance & security.

If you work from home, you may be able to claim for a proportion of your utility bills, but you will need to work out what proportion is used for business and what is used personally.

Stock Costs

stock expenses

Your allowable expenses for your stock may include;

  • Stock held
  • Raw materials
  • Costs incurred from producing goods

Marketing Costs

marketing expenses

Most businesses need to budget for marketing costs and this is taken in to account when it comes to allowable expenses. They may cover the following;

  • Newspaper adverts
  • Directory listings
  • Mailshots
  • Free samples
  • Website

You may also be able to claim for certain subscriptions. An example of these would be;

  • Membership to trade bodies or professional membership organisations
  • Subscriptions to trade or professional journals

Legal & Financial Costs

legal expenses

There are some fees that are essential in business and they may be covered under allowable expenses. For example;

  • Accountancy fees
  • Solicitor fees
  • Bank, overdraft and credit card charges (If used for business)
  • Interest on business loans
  • HP interest and leasing payments
  • Business insurance such as Public Liability Insurance

Other items that may be covered are;

  • Uniform or PPI
  • Staffs salaries
  • Bonuses
  • Pension contributions
  • Benefits
  • Agency Fees
  • Employer NI contributions.

This is just a guide and more information can be found on the gov.uk website. The most important thing to remember is that you will always need to prove these expenses so remember to keep a record of all receipts and invoices.

Outsourcing is actually a very realistic option for business owners so don’t be scared. If you’re still not sure, Rosemary Bookkeeping are more than happy to come and do a 1-2-1 health check with you and give you the opportunity to decide for yourself if you think you could benefit with no obligation, contact your local Rosemary Bookkeeper today.