Friend of mine used to run a fried chicken takeaway had a inspection of his book for the pasy year.
His staff used to buy stuff from his supplier contacts using his account number, as he never used to receive statements from them (although he was aware of this) he did not know how much were these private purchases, the HMRC now claims that all the purchases were his business use and therefore uplifted the sales and therefore would lead to potential VAT liability.
but he is determined to stick to that these purchases were not for his business (he obtained letters from his previous staff, admitting that they were used but stuff from suppliers using his name to take advantage of the special offers etc.
Will HMRC accept this?
any comments will be appreciated.
thanks for your time