One of my clients is in the middle of a compliance check by HMRC, this has been going on for a while and we have sent all the information that they have asked for which included copies of the cost of sales receipts and invoices.
My client did not have 3 of these receipts so I sent HMRC the copy of the cheque stubs, the bank statements showing the amount leaving my clients bank as well as the addresses of the businesses that supplied the goods.
Today I received a letter saying that the information given is not enough, which i do not have a problem with as I always thought that without the actual receipts there may be a problem and that I would have to contact the businesses concerned.
However they have asked "Please now obtain and forward the actual cheques in respect of the following:" listing the 3 missing receipts, these cheques were issued and cashed over a year ago so I am at a complete loss as to what they expect.
Gonna ring them Tuesday but just wondered if anyone else had ever come across this or anything like this before
Cheers
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Interesting given the comments in the other post from today!
I would be hounding the supplier for a suitable VAT invoice (well telling your client to), even dropping in to the conversation that HMRC are asking for copies (that usually gets the right reply with said bit of paper majically appearing). I suspect HMRC will now have their sights firmly on that company anyway!!
PLUS, given they have asked, get a copy of the front and back of the cheque from the Bank - easy to do and usually takes a couple of minutes as they are all stored electronically. Not sure if the Bank will release the original cheque these days (they used to), but if they do make sure you get a copy of the back and front before they send it in the post, for in the event if goes missing in the post between the bank and your client or your client and HMRC - dont want to give HMRC ANY excuses to disallow and add penalties.
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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
Interesting given the comments in the other post from today!
I would be hounding the supplier for a suitable VAT invoice (well telling your client to), even dropping in to the conversation that HMRC are asking for copies (that usually gets the right reply with said bit of paper majically appearing). I suspect HMRC will now have their sights firmly on that company anyway!!
PLUS, given they have asked, get a copy of the front and back of the cheque from the Bank - easy to do and usually takes a couple of minutes as they are all stored electronically. Not sure if the Bank will release the original cheque these days (they used to), but if they do make sure you get a copy of the back and front before they send it in the post, for in the event if goes missing in the post between the bank and your client or your client and HMRC - dont want to give HMRC ANY excuses to disallow and add penalties.
Hi Joanne, thanks for the reply
My Xmas was good hope yours went well (How were the martinis??)
I only did the year end accounts so had no idea these Invoices were missing until I started preparing the info that HMRC had requested, already spoke to him and told him he needs to contact the businesses concerned and obtain the receipts.
The request for the original cheques issued was what got me, I had no idea that banks stored all the cheques electronically let alone kept all the originals I thought that once they had been issued and then cleared that they would then be destroyed, glad you come from a banking background.
Does my client need to phone or write to the bank or can he just go into his local branch with the details of the cheques and get copies from there?
Thanks for your help
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Hi Doug
Yes mine was good thanks - no martinis yet (tonight I reckon) but copious amounts of wine. Plus the odd sherry - dont ask, its tradition!!!!!
Were you run ragged by your lot?
Depends what bank your client is with but most you can just phone and they can get the cheque copy up on their screens whilst you are talking to them. It will help if he knows the cheque number and the actual date it shows on his Bank statement. Should be the quickest way to deal with it.
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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
Hi Doug Yes mine was good thanks - no martinis yet (tonight I reckon) but copious amounts of wine. Plus the odd sherry - dont ask, its tradition!!!!!
Were you run ragged by your lot?
Depends what bank your client is with but most you can just phone and they can get the cheque copy up on their screens whilst you are talking to them. It will help if he knows the cheque number and the actual date it shows on his Bank statement. Should be the quickest way to deal with it.
Hi Joanne, yes hectic day but enjoyable all the same
Client banks with Barclays, I have all the bank statements here so I will dig out the relevant information that he needs and email this to him so that he can contact the bank.
Cheers for all your help
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
If HMRC are still not satisfied, ask them whether (1) they do not believe there was a supply, or (2) they do not accept the alternative input tax evidence? That will help you to provide further information and explanation.
If HMRC are still not satisfied, ask them whether (1) they do not believe there was a supply, or (2) they do not accept the alternative input tax evidence? That will help you to provide further information and explanation.
Hi Les
Thanks for the reply, client is gonna phone the bank Tuesday so hopefully he will be able to get copies of the actual cheques and I can then send them onto HMRC which is what they have asked for, I will then have to wait for their response.
Cheers
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Yes nice to get it all over with, I know that we should never have any concerns about an enquiry if we have done everything correctly but when you get the letter opening the check you still start to doubt your work so it is nice to get the okay from HMRC to say that they agree with all the figures submitted on the return.
I know they don't get a lot of credit but I must say that everyone I have dealt with at HMRC during this have been very helpful.
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
