Hi All, with regards to the above, my self employed client has made donations to a charity but has informed me she doesn't have any receipt, is there a way around this?
If not, ask the client to list down the donations and approximate dates and sign to say that he/she has incurred these expenses. This can then be used as your proof. Advise the client that this is needed in case of an inspection by HM R & C. Also advise your client that there is a possibilty that the revenue may not accept his/her signed statement and might clobber them for undeclared profit, resulting in extra tax, interest and fines. It is then up the client to weigh up whether it is worth claiming said donations.
Part of our job as bookkeepers/accountants is to look after our clients and interpret the tax laws (to the best of our ability) to ensure that the client claims everything that is legally allowed and doesn't claim incorrect items. We endevour to ensure that the client pays the minimum legally allowed tax and NI without flagging up the return for investigation. Most people who make regular charitable donations sign to allow the charity to claim back the tax. The revenue get a copy of this. If you are showing charitable donations were this hasn't happened then the revenue are going to take a closer look. Unfortunately, sticking a fiver in the poppy appeal collection tin doesn't count, sending them a cheque plus authority to claim back tax would count because you have a record.
Charities, surprisingly, actually pay a ton of money to raise cash, so much so that little, in some instances, really goes toward the trigger the charity claims to be working towards. For instance, Bloomberg recently found in an investigation that InfoCision, a telemarketing company, was pocketing up to 100 percent of the donated funds soliciting contributions for << Link removed and poster banned >>
-- Edited by Shamus on Friday 14th of February 2014 09:16:01 AM
Thats another SEO link to an American payday loans company isn't it?
Good point on charities though... Actually, by giving just £3 a day you can stop a poor UK accountant or bookkeeper from having drink instant coffee.
You won't be able to reply to this but hope that the devestation in Manilla has now subsided (seems to have now moved to parts of the UK).
Good luck with the SEO work on other peoples sites,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
