You haven't said if the business is VAT registered. If it is, then HMRC say that you must issue an invoice yourself. this link takes you to instructions for VAT Margin Scheme
Even if it is not, maybe your client can issue a receipt from a duplicating receipts book for the goods, signed by the seller, to say they have purchased the goods and use the copy as the record of purchase for their own accounts.
You will need to consider closing stock valuation at year end too, if your client is doing this part time on Ebay or something like that they may fall into the trap that whatever they spend on purchases is their expenditure irrespective of what is left in stock at the end of the year. Ideally they would have kept an inventory of the stock and the cost and then do a stock take at year end. In practice if its a job lot bought then they may have to give best (and reasonable) estimate. remember stock would be valued at the lower of cost or net realisable value...and clearly the lower the closing stock value, the lower the profit and hence the lower the tax bill!
As Zoe wrote in another thread there are no silly questions, just questions that you don't yet know the answer to.
You omit to state whether this was a cash sale?
If purchased through the company was it with a company cheque or credit card?
Are we talking about a sole trader or an incorporated entity?
Would the item(s) purchased be considered to be part of the normal trade of the business?
If you could supply a few more details please and we'll try and form an answer for the specific circumstances.
Rob. Love that you're quoting SSAP9 there. Can tell that you're still a Cima bunny at heart!
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.
I am desperately trying to shake off any CIMA memories Shaun! Many years ago I worked for an engineering company in East London and they told me to do CIMA, when I went to the local college all the tutors suggested I do ACCA, they said it would be better in the long run plus I'd get more exemptions as I had a degree. I wish I had taken their advice! The mere word 'CIMA' conjures up the smell of machine oil!
the line always used to be that if your going to be a management accountant then CIMA was the way to go and if you were going to be a financial accountant then you should go ACCA.
On the grounds that the ACCA incorporates the entire CIMA syllabus, and CIMA incorporates many of the elements of financial accountancy I don't think that division remains true.
The figures for the top 60 accountancy firms show the figures as :
11,853 trainee's hired in 2009 of which 7755 were ICAEW. 2250 were ICAS 1547 were ACCA 245 were CIMA 56 were CIPFA
Of the above the lions share were for the big four with PWC, Deloitte and KPMG sticking predominantly to ICAEW and Ernst & Young upping their ACCA's to 22% of intake.
Of course, if you decided to go ACCA now you would end up in the same position as a few of us on this site that you get ridiculously Draconian restrictions imposed upon you and you would only be able to do VAT, Payroll and prepare accounts to trial balance. That's regardless of any other qualifications or experience that you may have!
talk later,
Shaun.
__________________
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.
Yes the restrictions from ACCA are a little unrealistic. I did ATT some years back which has put me in good stead and I am allowed to practise under their auspices which is why I haven't needed to get a bookkeeping qualification, but I may still look at CAT, if nothing else it helps with cpd!
Believe it or not when I've finally got those long sought ACCA letters after my name (maybe on Monday... Maybe not! Really bad feeling about paper P2 ) I intend to do AAT and ATT as CPD's (so that I can expense them ).
Did you actually mean ATT or AAT in your note? If ATT how did you find taking that qualification?
Talk later,
Shaun.
__________________
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.
I passed ATT Assoc of Taxation Technicians. I did it in the previous century (1999)! Back then there was a course at Wednesbury college once a week but nowadays it seems you can only go to one of the big colleges who charge a small fortune. I would love to go on a similar course as a refresher, I'm not great at hitting the books!! It's pretty intensive, a friend who did ACCA and ATT (and subsequently CTA) says ATT is harder than the advanced paper in ACCA, I couldn't comment but it would be rude to disagree!!
Thanks for your replies, it is for a friend of a friend who is after a favour really as they know I am studying so assume I now know everything! Will try and find out more and pass this on!
Best one I've had so far is a family member cornering me and asking whether they could get an age related council tax reduction... Apparently because it has the word tax in it we accountant types are deemed to have studied all that sort of stuff!... Mmmm, on that logic I'd best start watching CSI just in I'm ever asked anything about forensic auditing! lol
hope you have a good weekend,
talk soon,
Shaun.
__________________
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.
) I intend to do AAT and ATT as CPD's (so that I can expense them 
).
