ltd company want trading on the street. Do I get permission for street trading from council?How I record all transaction on the street with people who are buying from us.Is it any proof for street transaction?
I would certainly speak to the council about street trading, I think they have a department for the local markets and for trading in lay-bys.
As for recording sales. I suppose it will all be cash sales, so all you would need to do is set up a cash tin of sorts, start with a float to provide change and then at the end of the day, add up the total money, deduct the float from it and that will be your takings for the day.
example.
Float £100 pounds.
Total cash at end of day, say £500.
Total Takings would be £400. (£500 - £100 = £400)
You would need some form of cash book to record each daily takings figure.
A few clients of mine are street traders, in addition to Merlion's excellent advice. I'd suggest your client buys a diary or maybe even writes the weather conditions on the "daily taking sheets".
It may seem daft at first but it will help explain fluctuations in your clients takings. Bad weather, less people out shopping. We all know HMRC view cash based businesses with a degree of suspicion, so the more evidence your client has the better.
Tony.
-- Edited by ADAS on Monday 30th of August 2010 09:38:39 PM
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
agree with ADAS, a simple diary will suffice and making notes on weather conditions and other factors that may affect your clients trading is very good advice.
Like ADAS says, the Inland revenue are a little suspicious of street traders, although they have the low down on what sort of gross profit margins they would expect, I would get your client to write as much info each day as possible.
Even if it means detailing everything sold. perhaps using a coding system depending on the volume of stock being sold and the different types of stock. It would not take long to make a note each time a sale is made. This way it could be linked to the stock being purchased.
