Keeping receipts

[2lovelygirls]

Hello, wondering of anyone can help? I only work 3 days a week a and have been keeping my expenses on a spreadsheet but to be honest I never keep receipts because by the time I've taken the percentages of bills off and meals for the children (which equates less than £10 a day) I am below the tax threshold. I do purchase bits and bobs but just never ran them through out of laziness. Next April I will be changing my mortgage deal and hoping to borrow a bit on our house for home improvements. When applying for a new mortgage deal will they question why I have no receipts or will it not matter? I earn less than 10k after deductions and it is my hubbys wage that will get us the mortgage we just need about a few grand from mine to make up the difference x

[FloraDora]

I am not an expert on this- but I think a loan/ mortgage company will want evidence of your annual salary and your tax return will show this...so I do not think these companies will require your receipts......but if it's over £10 you really need to keep receipts as the tax man may do a spot check. Also if you claim milk then you have to keep your milk receipts.
I keep a zippy wallet and that's where all my receipts go, no matter if it is small....straight from purse into here all higgledy....then I transfer them to my organised tax receipt file which has my printed out monthly book keeping.
As a small business, you are required to keep proper accounts...evidence that you are under 10,000 is as important as over and then paying tax -I think.....but I don't think the mortgage company will want these ...they will only be interested in your tax return and bank statements ?...But I have no experience in this!

[Simona]

Hello, wondering of anyone can help? I only work 3 days a week a and have been keeping my expenses on a spreadsheet but to be honest I never keep receipts because by the time I've taken the percentages of bills off and meals for the children (which equates less than £10 a day) I am below the tax threshold. I do purchase bits and bobs but just never ran them through out of laziness. Next April I will be changing my mortgage deal and hoping to borrow a bit on our house for home improvements. When applying for a new mortgage deal will they question why I have no receipts or will it not matter? I earn less than 10k after deductions and it is my hubbys wage that will get us the mortgage we just need about a few grand from mine to make up the difference x

The best thing would be to approach a financial advisor who can be a middleman in getting you a mortgage or a change to the current one....they do not charge for this advice.
Both your husband's earnings and yours will determine what you are allowed to borrow....it will be the combined income.

any company will want to see at least 2 years of financial accounts from a self employed person...so they can see the annual turnover which is very important to them...but if you are re-mortgaging this may be different as you are really asking for a top-up.....that was my experience in the past....so do check.

With regards to keeping receipts I think there are beginning to be small changes in how cms run their business....all receipts should be kept and entered in your accounts ledger....many now recommend we keep receipt for items under £10.

Where you get no receipt ...such as car boot sales...just use an invoice booklet and record the expenses in there.
Good luck!