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Sole Trader claiming AIA on VAN but no receipt

Evidence available as on bank statement

Sole trader brought VAN privately for £1800 but does not have the receipt

He made a bank transfer and think the reference on the statement says VAN purchase.  

Can he claim AIA or should he go back to the seller and ask for a receipt. Thank You

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By John R
27th Nov 2018 10:46

If the client says the money was to purchase a van, you know that he does indeed have a van and there is evidence of payment (even if not specifically identified on the client's statement), I would claim it. In the event of an enquiry, I would have thought that HMRC would find the available evidence acceptable. However, I would still suggest that an attempt is made to obtain an invoice.

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27th Nov 2018 11:05

As secondary evidence:

1. The V5 should tie into the change of ownership.

2. You should be able to obtain a rough valuation with the mileage from the V5 (if shown) on Parkers or similar.

Those two with the bank transfer should give 3 decent sources of evidence for ownership, value and the transaction having taken place.

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27th Nov 2018 11:07

yes , take a spin in the van

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27th Nov 2018 12:38

Thank you all

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27th Nov 2018 15:49

In this case where the consideration and quantum is only £1800 I would make the CA claim but if the sum had been £18000. I would have demanded an invoice before claiming any relief.
I must remind you of the fiscal agents public duty. A fiscal agent must be fiscally prudent considering his reputation, his integrity and his conscience.

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27th Nov 2018 17:57

So long as you haven't got yourself into a corner you should be OK.

From a client management perspective you don't want to be saying 'you MUST have a receipt', only to let it go without one. You would lose credibility.

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