Help preparing Self Employed accounts for Taxi Business.?

You have the choice of cash or accruals.

Cash is easiest. Just call the £8,000 an expense. This may give you a large loss for the year, in which case you pay no tax and carry forward the loss against profits in future years. Which you're allowed to do.

Accruals is what you will have to do anyway if your business gets above a certain size (basically the same as when you have to register for VAT) and to do it this way, you need to start doing proper double-entry bookkeeping so you can account for the vehicle as a fixed asset. Then you depreciate it over the number of years you expect it to last. Say you expect it to last 5 years. Then you would put down £8,000/5 = £1,600 each year as an expense called "depreciation" until the value of the vehicle has come down to zero 5 years later. If you want to try this, I suggest spending some time with an accountant (such as me!) to have a bookkeeping lesson as nothing is as good as being shown how to do it. Obviously this relates the cost of the vehicle better to when it will be used, and that's the point of it and why companies have to do their accounts this way, but it's more complicated to do.

For a small business, HMRC allow you to use the cash basis, as over time it's not going to make any difference to how much tax you pay. You might pay nothing this year, but have to pay more in future years because you've already written off the cost of the vehicle. But as I say, if your business does well, eventually you might HAVE to start using the accruals basis.

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You will first need to know what exactly Binary Options trading is, whilst this may seem like common sense many people just have a vague idea of what is involved and the exact risks attached to any trade, so make sure you fully understand the difference for example between actually buying a fixed asset and trading in Binary Options as the two could not be more different.

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Easy = phone the S.A. helpline and ask a technician. S/He will be only to happy to assist.

If you don't get an answer here, phone up HMRC and ask them.

They can be helpful.

UK

as long as you keep good records of your income and expenses you should have no problem reporting this self employment income