Buck's Road, Douglas
Isle of Man IM1 3TX
+44 (0) 1624 685400
The records you need to keep will depend on the nature and size of your business. You will need to keep a record of all receipts and payments of money relating to the business, including details of money received from customers for goods and services, and whatever you withdraw from the business to cover wages and materials etc.
It is important that you have the following information to hand at the end of the accounting period, in order to complete your Income Tax return form accurately:
All this information will be needed to ascertain the profit earned in the accounting period. The accounting period is ordinarily a 12 month period in which the accounts are prepared and that you will pay tax for. The accounting period end date is the individuals date of choice. It can be altered, resulting in short periods of account, but cannot be longer than 12 months.
You should keep both personal and business bank statements, cheque book stubs, paying in books, receipts and similar evidence so your figures can be verified if necessary. You are required to keep your business records for at least 6 years.
You may decide to engage the services of a professional advisor. They will be able to advise you on financial matters generally, as well as maintain your accounts, and arrange your income tax payments. The Income Tax Division will normally correspond with the advisor you choose and not directly with you, and copies of payment on account requests and assessment notices will also go to them.