Business expenses paid via PayPal

Paid via paypal & no invoice, what should I do?

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It will be a year in around 2 months since I formed my business. I do consulting and everything is operated virtually and I use only paypal for processing payments in and out of the business.

Pretty much all transactions are from/to another businesses. But going through the history I noticed some time back I (very stupidly) paid a couple of times  to some virtual assistants abroad just to their email.

I don't suspect they have an official business so I don't have an invoice. Simply that money went to their paypal/email. Overall maybe 3-4 transactions, together probably not amounting even to £80.

I wasn't in touch with any accountants since incorporating, only recently as it's coming towards the end of the year and I wanted to see if everything was as it should. The accountant told me that everything should be documented with an invoice, and that I should ask for an invoice, and if they can't give it (i.e. they are not a business), they should send me an email outlining they are requesting the money. But overall this is a very small sum and it's unlikely I'd get investigated, but I just need to do everything legally from now on. And that these can be still written off as business expenses

Is this correct advice, and is there anything else I should do about this? (apart from always asking for invoices) 

 

Thanks!

Replies (2)

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By Manchester_man
30th Sep 2016 09:14

Sounds like reasonable advice to me.
Would you rather he said you can not include the expenditure as a deduction?

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Replying to Manchester_man:
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By ds1616
30th Sep 2016 16:13

Not really, I am simply trying to double check with others on this advice. It's my first time going through this process so I am pretty ignorant, despite reading a lot on the official site.

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