I am just preparing a self assessment for a client. It's a new business, first years return. He bought a van and also tools but doesn't have the receipt for the van and most of the tools but has made a list of the tools and values.
I would put through if the the values seems reasonable to the list he has given. But let him know, in writing, that should he get investigated then it may be disallowed.
How was it paid? If paid through bank account have you seen the bank statements? If paid cash then obviously you wont have a paper trail if dont have the invoices. Can he get copies of the invoices from the supplier in this case?
Thanks for the response. The guy seems genuine and has got the van and tools as proof. I have told him in future to keep receipts for everything.
The van I believe was paid for with cash he received when he sold his car. I have 2 receipts for tools and he has made a list of tools with values next to them. I suppose at a pinch he could get a receipt for the van as surely he will remember who he bought it from.
I am going to run all expenses claimed past him and agree before submitting so that we agree.
Marks response is spot on - and I agree that you should ensure that anything you "believe" and 'assume' is clarified in writing with your client.
The last thing you need if your client was under investigation and found to be at fault would be for them to say "It was my bookkeepers / accountants fault"
Whilst this wont wash with HMRC - having any evidence of them confirming your assumptions keep your mind at rest and protect any possible claim's against you..
Hope that Helps
- PS Mark - how is the new addition??
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I've emailed the points across to the client and got him to confirm that he understands. I have told the client to keep receipts for everything in future and I think he understands.
Hopefully going forward there will be proof of purchase for everything.
I will confirm everything in writing with clients to cover my back and also to show that I am explaining things to clients to help them understand.
