Honest Box

[jfj]

Just wondering what implications there may be of performing cash sales without generating any kind of receipt documentation?

One of my sales avenues (outlets) involves selling my products by way of an 'Honesty Box' system.
In this system, products are simply taken by customers who then, either immediately or some reasonable time in the future, 'honestly' leave the correct money in the cash tin.


In this case no company representative (or electronic system) is present at the time of the transaction (sale) to be able to generate and issue a receipt.

Any problems with this?

Thanks

 

[elaine@cheapaccounting]

No problem at all - just record (assuming not vat registered of course)

debit cash
credit sales

We buy strawberries from a stall in this fashion - they taste lovely

 

[DeanCo]

Business records must have some record of all your sales/purchases/expenses. If you are VAT registered you must keep records. If you are registered for VAT you must also, keep records of sales, purchases and VAT accounts.

The records you keep must be kept updated and there are penalties for not doing so.

 

[andygambles]

Business records must have some record of all your sales/purchases/expenses. If you are VAT registered you must keep records. If you are registered for VAT you must also, keep records of sales, purchases and VAT accounts.

The records you keep must be kept updated and there are penalties for not doing so.

A bit of an overly complex and scary reply I think.

Just record in a receipt book each day the cash takings.

 

[elaine@cheapaccounting]

To clarify the record would be:

Monday cash takings from honesty box £x

Tuesday cash takings from honesty box £x

Wednesday .... etc etc

I expect the amounts involved will not be too significant and I doubt HMRC will feel the need to over impose an unworkable accounting system for such amounts and method of sales.


Common sense needs to prevail for this type of transaction.

 

[MyAccountantOnline]

We buy strawberries from a stall in this fashion - they taste lovely

It's eggs for me

But back to the accounting I'm with Elaine on this one.

 

[elaine@cheapaccounting]

we could make a eton mess with both

 

[MyAccountantOnline]

we could make a eton mess with both

Oh dear....what can I say, they get worse.....

 

[Jenni384]

To clarify the record would be:

Monday cash takings from honesty box £x

Tuesday cash takings from honesty box £x

Wednesday .... etc etc

I expect the amounts involved will not be too significant and I doubt HMRC will feel the need to over impose an unworkable accounting system for such amounts and method of sales.


Common sense needs to prevail for this type of transaction.

Totally agree with this!

 

[BobbyBoy]

we could make a eton mess with both

What about the cream? :|

 

[elaine@cheapaccounting]

What about the cream? :|

I'm sure some cow will oblige