My client runs a small limited company based in offices with a couple of employees. They do have one client in Europe that I am aware of. However, when going through the Subsistence nominal account for their latest accounts there are a large number of cash withdrawals and payments for petrol and meals made overseas. I happen to know that the director of the company has family in Africa and quite often will go out their for months at a time.
On raising the matter to him and tentatively suggesting that many of these withdrawals from the business account should be posted to the directors loan account rather than an expense account my client insisted that these were bona fide business travel expenses. I had also asked that receipts and invoices for these expenses were provided for me to review if he felt these were valid business travel expenses. Unfortunately, as my client informs me, his car was broken into and his laptop along with all of the relevant paperwork was taken by the thief.
Any suggestions for the best course of action here? I would estimate that the expenses are in the region of £2-3000 for the year.
Many Thanks in advance for your advice.
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