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Credit card statements

Analysis of credit card statements

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I have a client who has used credit cards for a lot of payments.

I am saying that we need to analyse the credit card statements. My client wants to use the repayments of the credit cards from the bank account and estimate the analysis without looking at the credit card statements. He doesn't want to take into account the fact that the payments from the bank doesnt agree with the credit card charges. I have explained to him that he will leave himself wide open to a charge of VAT and tax fraud if he decides to estimate VAT and expenses rather than put the correct figures in the accounts.

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blue sheep
By Nigel Henshaw
16th Jul 2021 18:34

And is there a question? Sorry don't mean to be rude but I am confused (not for the first time admittedly)

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RLI
By lionofludesch
16th Jul 2021 19:02

There is no question about it.

You're absolutely correct, Peter.

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By David Ex
16th Jul 2021 19:14

Client or potential client? Presumably you will tell him you either do the job properly or not at all.

As NH says, not sure what your question is and what answer you want. I’m sure you’re not asking if what the client suggests is acceptable.

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RLI
By lionofludesch
16th Jul 2021 19:30

Just estimate it as 100% private if he can't be bothered to prove otherwise.

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By petersaxton
16th Jul 2021 20:26

I suppose the question is:
Can you confirm that my suggestion is correct and my client is talking nonsense and is trying to commit VAT and tax fraud?
He regularly makes ridiculous suggestions and thinks he is right. I tell him what is needed but he hardly ever agrees.
He doesn't want time "wasted" on doing the job properly. I don't want to get involved in any fraud.

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Replying to petersaxton:
RLI
By lionofludesch
16th Jul 2021 20:44

petersaxton wrote:

I suppose the question is:
Can you confirm that my suggestion is correct and my client is talking nonsense and is trying to commit VAT and tax fraud?
He regularly makes ridiculous suggestions and thinks he is right. I tell him what is needed but he hardly ever agrees.
He doesn't want time "wasted" on doing the job properly. I don't want to get involved in any fraud.

Time for harsh words.

He does it your way or you disengage.

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Replying to petersaxton:
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By Hugo Fair
16th Jul 2021 21:03

Is this the same client as in your other post of almost the same time (regarding tax deductibility and interest)? They certainly seem to share the same approach to life ('cavalier with the truth' would be a generous description).

Whether or not he is "trying to commit VAT and tax fraud" is hard to tell, but it sounds like he doesn't care about accuracy (or probably honesty) ... so I'd walk away unless he takes your advice.

For the avoidance of doubt, your role is not to merely rubber-stamp whatever he says or does.

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Replying to Hugo Fair:
By petersaxton
16th Jul 2021 21:11

He is the very same client.

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Replying to petersaxton:
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By David Ex
16th Jul 2021 21:51

petersaxton wrote:

He is the very same client.

I’m not sure why you are wasting your time. On the basis of what you’ve said in this and the other question, he will never be a client you can trust and you’ll spend (unprofitable) days of your life unsuccessfully trying to keep him honest. Disengage.

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Replying to David Ex:
RLI
By lionofludesch
16th Jul 2021 22:10

David Ex wrote:

petersaxton wrote:

He is the very same client.

I’m not sure why you are wasting your time. On the basis of what you’ve said in this and the other question, he will never be a client you can trust and you’ll spend (unprofitable) days of your life unsuccessfully trying to keep him honest. Disengage.

My thoughts entirely.

The hook is that he's ill but that cannot excuse or condone dishonestly.

If he won't toe the line, out he should go.

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By CJaneH
16th Jul 2021 20:56

I was under the impression that to claim input VAT the business needs a valid VAT invoice, preferably match to a payment.. So estimates of the split of expenses certainly would not give rise to a valid claim for input VAT. I rather agree that without detailed analysis and invoices it should all be drawings.

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Replying to CJaneH:
By petersaxton
16th Jul 2021 21:19

"I was under the impression that to claim input VAT the business needs a valid VAT invoice, preferably match to a payment.. So estimates of the split of expenses certainly would not give rise to a valid claim for input VAT."

I have explained this rule to him but he doesn't think it should apply to him. He thinks he doesnt have to take any notice of the law. I have told him that I dont want to be part of his fraudulent plans.

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Replying to petersaxton:
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By [email protected]
17th Jul 2021 16:04

Presumably he is following the example of the PM and many cabinet ministers, who also don't seem to feel that the law applies to them.

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