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I received an email warning from a friend about this potential issue. Is it a scam? I don’t really know, but if you read the warning email you can then make up your mind. To my mind it could be an innocent oversight, but if it’s not then it’s a low-ball way of taking people for a ride!

Anyway, it’s a salutory lesson that all of us should check carefully our receipts and vouchers after using our debit and credit cards… and to regularly reconcile our bank account statements.

So your statement’s arrived! Good.  So,  go and take a look,  it’s there to keep you informed about what you’ve spent your money on and by detailing your transactions. Remember to always keep your receipts safe! Then check them off against your statement and dispose of them carefully by shredding them with a CROSS-CUT shredder! Do NOT rip them up into little pieces as anybody good at jigsaw puzzles can still put them together. This is especially important for statements too.

If you spot a transaction that you don’t recognise you can get help by calling your credit card provider from the phone number on your statement. If anything seems wrong contact your provider straight away.

Be aware that if your credit card provider thinks something doesn’t look right with your account, they might call you and try to get to the bottom of the matter OR they might decline the transaction and you’ll have to phone them.

 The Trick is to get yourself organized right from the beginning.  (Even If You Just Throw Everything Into One Box .)

Keeping good records, verifying every entry is the key to successfully claiming all the home-based business deductions to which you are entitled. If you have recently started an Internet or home business, your probably a little intimidated by having to submit a tax return and the possibilities of being audited. Simply follow these guidelines and rest assured that filing your next tax return will go smoothly.

Get yourself an accounting ledger booklet. Better still open up an exce spreadsheet, simply label, expense or income.

Franchise Expenses:
 If you have a monthly affiliate, make sure you claim that.  

Business Supplies:
Be sure to save all receipts for any supplies you purchase for your business use. Business cards, paper, pens, ink cartridges, staples, any item you purchase and use for your business. 

Advertising:
Most advertising can be claimed on your taxes. Keep all receipts for any newspaper ad’s you may run, or any advertising you do online. Advertising is a business expense and in most cases can be written off.

Phone Bills And Internet Access:
These items are business expenses, make sure that you save your monthly  bill. You  may only be allowed to deduct a portion of it. 

Home Office:
If you have an office in your home, make sure to let your tax advisor know. Using a room in your home as an office can also be  added on taxes. Check with your tax advisor as to the best way to calculate this business expense with mortgage, interest, property taxes and insurance. 

Long Distance Calls:
If you make any long distance calls that are related to your business, make sure you keep all phone bills showing the calls and the amounts charged. If these calls are related to your work, the cost of the calls may also be written off in most cases.

Postage:
 This one is often forgotten, any postage cost or shipping fee may be claimed. 

Computers:
 You may need you tax advisor to help you calculate  your depreciation on the cost of your business computer.  

Labor Expenses:
Any reasonable payments made to your spouse, kids or others who  completed a task are all deductible expenses.

Utilities:
If you have a room in your home that is used only for your internet business and nothing else, you will be able to deduct a portion of your utilities. I especially like this because I have to have these things anyway with or without the internet business and now they are tax deductible. Everything from gas, electricity, long distance and garbage pick-up are allowable deductions. Be sure that you keep your payment receipts in your accounting ledger or spreadsheet.

Car Expenses:
Each year I make myself a simple spreadsheet that I keep in the glove compartment of my car. Each time that I need to get office supplies, or I go to the post office to mail flyers, I write my beginning and ending mileage down on the spreadsheet. At the end of the year, I just transfer the mileage over to my accounting ledger. Keep all receipts for gas, oil, maintenance, insurance and interest on car-financing costs. Check with your accountant as to what  percentage you should claim for as a business expense.

Entertainment Expenses:
 Make  sure you deduct dinners, parking tickets or any  other expense with any potential clients.

Education:
Keep all receipts If you attend any seminar, conference, convention or trade shows such Internet or MLM Marketing or managing your home biz. Don’t forget to include any parking costs. Costs of trade magazines, journals, web subscriptions and software.

Income:
In addition to all your deductible expenses, you will also  need to keep track of any money that you make with your business.

Travel:
The percentage and eligibility of deduction depends on whether your trip was deemed to be business-related exclusively (100 per cent) or partially (50 per cent). Best to keep receipts and discuss with tax advisor.

In closing, keep good records, verify everything with copies of all bills, paystubs, a mileage log for the vehicle, etc. If you are ever audited, you will have your information organized and ready. Total up each category at the end of the year and take the entire booklet or excel sheet into your tax preparer.

If you are at the point of looking to  start  a home business,  than I would only have one suggestion. Not only is this the most lucrative business on the planet, this is the best group that you could join with.  The company is Amega Global and the team is the Polaris Group 

In 2008 I stressed out over the Christmas period preparing all of the paperwork needed for the looming tax return deadline. Two returns and a company return means I have a LOT of paperwork, receipts, bank statements to reconcile etc.

Last year, 2009, I was a bit more organised and stressed out about it BEFORE Christmas (getting better though!) and had the returns all done and the visit to the accountant before Christmans.

If you are like me, you will have spent at least some time over the last few months, or possibly the Christmas period, going through your paperwork for the dreaded tax return—and vowing that next year you will be more organised.

Many new landlords with perhaps just one property wonder if it’s necessary to do a tax return? The answer is “YES”, and you should do it even when you have made a loss. Any losses can be carried forward if these have been recorded with HMRC.

Being organised and having all the necessary paperwork to provide an audit trail is most important. If something is a little complicated, make a note of it separately and keep it on file as the faintest of ink is better than the best of memories (ancient Chinese saying).

The tax authorities are likely to come down hard on landlords that don’t comply with the tax rules. Always make sure you are ready for an investigation, as these often unnecessary fishing exercises by HMRC can be very time consuming, so be warned!

Remember – you need to do your Tax Return online by Sunday 31 January. If you are going to post it, make sure it reaches them by Friday 29th to be sure of not receiving a £100 late penalty fee. Better still, send it recorded or next day delivery to be sure. Make sure you visit www.hmrc.gov.uk/sa and do your 2008/09 Self Assessment Tax Return online by 31 January 2010.

For further help, including a ‘Step by Step’ guide to Self Assessment online filing and a bite-sized video, you should visit www.businesslink.gov.uk/hmrctaxhelp

Finally, start getting organised NOW for March 31st 2010 and aim to get the accounts and the returns done even earlier in 2010! I will be… will you?

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