Missing receipts for some large expenses

Missing receipts for some large expenses

Didn't find your answer?

Hey there, been trying to work my way through my bookkeeping. I run a non-VAT registered (exempt by nature of business) business, but seem to be lacking receipts for some fairly substantial amounts where goods to be sold were bought with cash.

There's clear third party evidence that the goods were delivered to me, as well as clear third party evidence of the goods being sold, and the cash being withdrawn. It's also possible to see market value, although not for wholesale, but it shouldn't be a significant margin, the business model is low-margin, high turnover.

However, for a roughly 3 month period, I seem to be missing about a third of invoices. This comes to a sum in the low 6 figures range.

I'll do my best to get in touch with the people dealt with, but in the meantime,  is there any way to do this? Can I estimate my margin, based on previous purchases (may vary a bit) and use that? One thing that does complicate it a bit is where things have been done like withdrawing more than needed, and then using the remainder for another purchase of the goods in question at the weekend, when the banks are closed.

P.S. it's a single product, but I should add it's nothing illegal!

Replies (4)

Please login or register to join the discussion.

avatar
By duncanedwards
19th Mar 2015 17:35

It appears that what you can't do is make it right. You are doing what you can to rectify but you'll always be working with some uncertainty. Just make sure you are upfront with the limitations of your accounts.

If you haven't already, maybe engage an accountant.

Thanks (0)
avatar
By pawncob
19th Mar 2015 17:37

Without some evidence of value, it wouldn't be wise to include any amount in your accounts.

How can you spend that much and not get a receipt? (Mr Balls gets one from his window cleaner)

Thanks (1)
David Winch
By David Winch
19th Mar 2015 17:53

Must try harder!

Dear me, you should have kept the receipts.

But don't worry too much.  If you were paying cash for goods in transactions equivalent to 15,000 euro or more then the sellers were 'High Value Dealers' registered with HMRC under the Money Laundering Regulations 2007.

They will have kept a record of the sale & of the purchaser (you) - that is why they asked to take a copy of your passport before they accepted your cash.

So just ask them for copies of their sales invoices to you.

David

Thanks (1)
avatar
By Stuart.thomson
19th Mar 2015 21:28

If you know the amounts then you need to get your client to confirm that they were legitimate business costs. Your client can self certify the payments.

The taxman will not be happy but unless he has evidence to the contrary will accept it. I wouldn't reclaim VAT though as you need a receipt to do that.

Duncanedwards is right you are living with uncertainty and you must caveat explain the limitations in your work. I would I also recommend to your client a new process for receiving /keeping receipts.

Thanks (0)