I am currently entering all the bank statements onto Sage and there are several Paypal transactions and a few other transactions that are for small amounts. I have no receipts so I cannot claim the vat back but i know the goods are for the business, so am I right to put into misc expenses.
Hi Nikole
My first question has to be how do you know that the goods are for the business without any receipts? Consider it that HMRC would ask you the same in the event of an inspection. The great thing about Paypal is that its generally used for the likes of Ebay transactions (although I know it has other uses too) so there is most likely a digital footprint. So i would go back to the client and try for actual receipts - certainly the actual businesses who trade through ebay will supply them with the goods or at the very least on request. When these such attempts have been exhausted then I would suggest that you have copies of the order acknowledgments that show the amount paid and what the item purchased was for - at least that way you can show that the item is perhaps business related rather than not. (Eg I had a clint say they bought stationery items - turns out it was childrens scissors of the plastic variety!).
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I totally understand your point with regards to the HMRC. I have requested receipts on several occasions, but am still waiting. I guess I will have to keep asking.
Or drop everything that doesn't have a receipt to the DLA.
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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.
