Paying Cash with No Available Receipt

[CorasCreations]

Hi All,

You've all been so helpful in the past so I hoped you'd be able to help once more with another question.

Today I purchased some goods from a car boot, I obviously paid cash with no available receipt. I assume I just put this from my cash balance. However no receipt how does HMRC view this. Surely I'm not the first nor the only person to buy from a car boot like this so I assume theres a procedure to follow.

Thanks!

Cora.

 

[john1989]

Even if you bought from a car boot, there's no reason you couldn't ask for a receipt.
I've bought from car boot traders and a receipt wasn't a problem.

Without any documentation, HMRC could seek to disallow the cost in the event of an enquiry.

 

[CorasCreations]

Really?

I thought your average Joe would think I'm pretty strange asking for a receipt on a random second hand product that I just purchased from them at £1.00 on a Sunday morning...

I'm surprised. I thought HMRC was cracking down on people purchasing from such venues to sell on and therefore there would be a more standard practice.

What happens if I choose to sell something by cash then, on a stall or a stand, how do I prove I sold something for said amount then?

 

[StevensOnln1]

You don't need to prove what you have sold or for how much. You would only need proof that money coming in was not income (i.e. a loan or gift).

 

[CorasCreations]

Excellent, so how would this relate when purchasing then?

Would it be that I just have to prove that I was there? and what I purchased?

How would I go about doing this?

 

[Newchodge]

As has been said. ASK FOR A RECEIPT

 

[CorasCreations]

Ok thank you, I was simply being sure. Seems pretty strange, I'd think it was if I was selling there as someone asked me... but never mind, Chill.

 

[john1989]

What's strange about it? If someone is running a business, surely they will expect to be asked for a receipt time to time.

Likewise, if you are trading on stalls etc you should be recording all your sales and carrying a duplicate invoice / receipt book.

 

[Rock Hard Trading]

What if you are buying a 2nd hand laptop for the business (classed as an asset?) from someone, how would you receipt/invoice that?

Help would be much appreciated as I am about to do this.

Thank You

 

[Bob]

What if you are buying a 2nd hand laptop for the business (classed as an asset?) from someone, how would you receipt/invoice that?

Help would be much appreciated as I am about to do this.

Thank You

I would want something from the seller with their name. address, the price, the date and a description of the item. For petty cash items, I will differ from the other posters. If it is a frequent occurrence and the items are less than say £10, I would keep a little notebook and jot the details down when I made the purchase. I would then include the totals as cash purchases in your records. Provided you can account for where you got the cash from to make the purchases, I don't see a problem

 

[Deleted member 59730]

Write yourself a petty cash voucher and date it.

 

[Rock Hard Trading]

Yes I can account for where the cash will come from (business account). Would a petty cash voucher be sufficient for around £750?

 

[Bob]

Yes I can account for where the cash will come from (business account). Would a petty cash voucher be sufficient for around £750?

IMHO not sufficient. For £750, you really need a receipt with the information I suggested earlier