Hello there - I am a newbie to the site. Not long qualified and just setting myself up from home. I just have a quick query - probably a very easy one but I just want to make sure I am doing it right!
I have my 1st client who is a sole trader and not VAT registered, they have given me a carrier bag full of receipts for the year. Now checking against bank statements, there are a few receipts for petrol which are missing. Can I still enter these into the books as an expense despite not having a receipt?
Its a bit of a pain when paperwork is missing, but it does happen. I general follow the rule that if any invoices / receipts are missing, to firstly highlight it to the client. Often they will find a pile of receipts that they didn't hand over, or can get duplicate invoices etc for you. If they are not forth coming I would say be carefull about posting. Without evidence that these are legitimete costs of the business, they could be taken out of the expenses side of the P&L by an accountant. Personally, if you find yourself in a situation where there is a charge on a business account, which the owner is saying is not for personal us, but cannot get any copy receipts for, I post it anyway, but flag 'No Invoice / No Receipt', so that if there is any comeback, you are not spending time searching for paperwork thats not going to be found. Be careful if the client is also VAT Registered though, as you certainly cannot claim back purchase VAT with out receipts showing that supplier is VAT registered as well.
