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bigduckontax, Accountant
Category: Tax
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compays accounts: 1. customers has personal loan that is being

Customer Question

compays accounts:
1. customers has personal loan that is being paid from companys account. can we account for it? how ?
2. Customer has loads of withdrawals from companys account but no receipts. Can this be included in accounts if spendings were towards the business?
3. What if customer hasnt got receipts /invoices as a proof for some of the transactios that are going on on the statements. can we account for it ?
4. After doing companys account. Does the customer / accountant need to keep all receipts and invoices for the proof of all transactions included in the accounts ?
Submitted: 4 years ago.
Category: Tax
Expert:  bigduckontax replied 4 years ago.

Hello, I'm Keith and happy to help you with your question.


With self assessment and on line submissions to HMRC for companies accounts etc are no longer submitted to HMRC as a normal procedure, they will be needed not only for your own records, but in case of an investigation. Whilst formal receips are not essential, they are of assistance should there be any query in the future and I would retain them whenever possible. I have in the past had an official demanding to see the receipt for 13p of VAT reclaimed! Accounts are, of course, a requirement for shareholders.


Thus whilst all these un-vouched transactions can and should pass through the books of account please be aware of the limitations in the event of future queries. Verbal evidence may assist.


Please note that if you have a follow up question I shall not be on line again until Sunday.