We have inherited a case where the client has an Aspect enquiry. All bar one point has been agreed but the problem is wifes wages. HM R&C say that because the amount has not been recorded in the cash book we can't prove that it has been paid.
Its a husband and wife under his name as a sole trader but she man's the phones and writes up the books, HM R&C have accepted that she does this work.
However they are still disallowing the expense as we can't prove its been paid, and won't budge, our final option is to go to the commissioners. Which given their unreasonable stance we feel we have no choice. The amount is only £2,600 a year and actually very representative for the work involved. We have argued the amount has been paid from cash drawings but HMRC says we cannot prove this.
Has anyone come across this before and can anyone offer any insight into the best methods to attack HM R&C's case?
Any help will be much appreciated