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)
Please login or register to join the discussion.
Sounds like reasonable advice to me.
Would you rather he said you can not include the expenditure as a deduction?