Q: Where the majority of my goods come from there is no invoice or receipt involved. How do I go about keeping the taxman happy?
Jun 10 2009
Answered by: Clive Lewis Ask a question
You do not mention why there are no invoices or receipts. The response must therefore be very general. Basically HMRC will be concerned to ensure that your business is not involved in any fraud resulting in Income Tax and National Insurance being avoided as well as VAT fraud. In addition, the authorities will be looking to ensure that your business is not involved in money laundering. Money laundering is exchanging criminally obtained money or other assets for ‘clean’ money or other assets with no obvious link to their criminal origins. It also covers money, however come by, which is used to fund terrorism.
It will be difficult to satisfy the authorities that you are not involved in any of these activities without producing purchase invoices or receipts. Penalties for these offences are severe. I suggest you talk to an accountant and discuss the circumstances of your business with them. All professional advisers are under a duty to report suspicions of Money laundering to the authorities.
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