UK Tax return

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Hello I'm studying accounting and taxation at university, I have been asked to do some tax returns for some friends all are self employed. Here are a few of the questions that I have.
1) One of my friends deals a lot with cash income and so what evidence does he have to supply on his cash income
2) another friend is a singer again self employed, can she claim clothing that she wears on stage as an allowable expense as it is for her job.
3) a relative also gets paid cash but deposits there money weekly when they get paid, obviously the evidence here should be bank statement but will hmrc think he's getting money everytime he makes a deposit ? Because he said sometimes he's got 100£ out to buy something but decided bit too so put it back in will they think this is 100£ more of income?

Please can someone help me cause wondering if I have bitten off more than I can chew thanks for your help!!!!
 

Becky

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  1. The receipts he gives his customers... I'm guessing he hasn't done that though. Always best to avoid dealing in cash due to lack of paper trail, you will have to revert to other evidence of the contracts - eg correspondence, bank statements etc.
  2. No, clothing is not allowable.
  3. I'm guessing there is no other evidence of income earned? You could always ask them to go through their bank statements and itemise each payment, but it's not ideal.

Your friends/family really haven't done you any favours!! :eek:
 

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