Reduction for cash?!

[lewiswood]

I expect they would have asked for a receipt as well!!

Edited December 14, 2013 by lewiswood

[Marc]

Not sure if it's been mentioned, but if you ever get audited by HMRC they will find it suspicious if you do not have any cash sales.

[Stereo]

Yes, that is true. They know the industry average for cash sales and they may start digging if you have none. For example why did you fill up the truck on this day when you hadn't worked for a week etc. if you can't come up with a good answer they will just estimate.

 

I know a builder who got inspected and they found out he had just been on holiday. No receipts. No bank payments for flights / accommodation and no cash withdrawn in Spain. Needless to say they hit him with estimated cash takings for the past 6 years and taxed him on it. Cost him about 5k as I recall.

[LoadhandlerUK]

The estimation route by HMRC is interesting. We had a guy who worked for us who also ran a newsagents staffed by his wife and son. He had a visit one day followed up by correspondence with an estimation of his takings and profit. He 'owed' them £14k in income tax and VAT. It cost him £4k in accountants fees and representations to argue it down to £8k. They had him on toast.