If you’re a sole trader, here’s a breakdown of what records you bookkeeper will need to produce your year-end accounts and personal tax return.

Firstly, it is important to remember that the tax year covers the period 6 April to 5 April. If your accounts have a 31 March year end, then your accounting period will be 1 April to 31 March.

ACCOUNTS RECORDS

• Bank statements for ALL of your business accounts and for the entire period. You may only have one main account, but if you have any other business bank accounts, they’ll still need to see the statements to track any movement during the year. Even if it’s just small amounts of interest.
• Loan statements. Banks sometimes send out statements per the calendar year, but your bookkeeper will need to know the closing balance as at your year-end date. The interest suffered is a tax-deductible expense, so it’s worth providing for the correct period.
• Business credit card statements. If it’s a personal card that you occasionally pay for business expenses on, then make this known.
• Finance agreements taken out during the year. If you’ve got a new hire purchase, you must let your bookkeeper know. The interest on the repayments is a tax-deductible expense and the asset could fall under the annual investment allowance (AIA). Failure to disclose a new piece of equipment could add hundreds of pounds to your tax bill so make sure you provide the paperwork.
• Payroll records for the year (unless your bookkeeper runs your payroll of course). You’ll need a print out of each month’s pay run so they can reconcile the net payments made to employees. Make sure your reports show employers national insurance; payslips are not enough.
• VAT Returns. Make sure you provide these with the necessary paperwork to back up the returns.
• Sales income. Copies of all your customer invoices, whether paid or not.
• Purchase invoices and expenses receipts for the period.
• Petty cash receipts and also a note saying the petty cash balance at the year end. Your bookkeeper will need to reconcile your cash so this vital.
• Stock value as at your year end.

TAX RETURN RECORDS

• P60 if you are employed and P45 if employment ceased during the year.
• P11d then also include that as otherwise your tax calculation will be wrong and you could end up getting a tax refund that may not be due.
• Private pension payments made. Your bookkeeper will need these details to ensure you claim the tax relief on your payments.
• Bank interest received during the year (excluding ISA’s). This is one item on your tax return which HMRC already know, so don’t “forget” your savings account.
• Dividends received during the year.
• Gift Aid donations. Your bookkeeper will need details to ensure you claim the correct tax relief.
• Any other income received during the year. This could range from another self-employment that you may have, shares received, foreign income, capital gains from disposing of property, pension received, Trust income or higher rate child benefit.

Your personal tax return needs to show ALL of your income so it’s better to run something past your bookkeeper if you’re unsure, rather than making the decision not to declare it yourself.  If in doubt, ASK.