While your bank statements are great for showing everything that went into your bank account, they only show the net amount (your take-home pay).

Your bank statement won't show us:

• if the contractor deducted your tax properly
• if the amount paid included materials reimbursed
• if any of the payments were emergency taxed
• if the company you were working for used a payroll company to pay your wages, and if they did:
• did that payroll company deduct a margin from your earnings?
• how much was that margin?
• if PAYE tax/National Insurance deductions were made (if you were employed)

As your bank statement misses out this critical informaiton, it is not possible to accurately complete a return based solely on bank statements. As such, we would always advise you to take a little extra time getting the necessary information together first.

The chances of there being an error, however small, here is very large and any errors on your return can be very costly.

In summary, you should consider bank statements to be a starting point only, as we will need further information in order to complete your tax return correctly.

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