Boot sale receipt problem

katchambers

Hi,

I am new to the tax board and I have recently started my own business. I buy a lot of my stock from boot sales but the problem is receipts - I cannot get a receipt to prove I spent the money on the stock. Is there a way around this? My friend suggested taking out some petty cash and keeping a record of every penny spent, would this be enough?

I really cannot ask people for receipts, even if I take my own, it would be terribly embarassing, would increase the cost, and it is just not done, is there another way?

Thank you

Kat x

weaver

Just had the same thing with a client (I work for an accountant) the inland revenue would not budge and allow the new items purchased from the car boot without a receipt.

It may depend on your local office give them a call - but Id say you are not going to be able to claim the items without proof of purchase, they are quite strict on this.


if goods are new think you may struggle to claim them.
If second hand from private individuals keep a record of purchase price and selling price (less any costs to you i.e petrol to get to car boot, selling fees etc ) no other way of doing this.

katchambers

The goods are not very often new actually, so you think if I just keep a note of how much they cost me it will be ok?

Thanks
Kat

p.s what would the receipt of new goods need to entail? Must there be a signature from the private individual I buy from?

tru

When I first went self-employed, I bought a second-hand computer from a friend. I rang the tax office and explained why there was no receipt and could I still put it through the books and they said yes.

Although there's no proof of what you actually paid for the items, there's proof that you bought them because they'll show up in your accounts when you sell them. Does that make sense :undecided It does to me

I buy most of my stuff from wholesalers but now and then I need something quick so I buy from Hobbycraft, I just keep the till receipt.

weaver

I wouldnt bank on this being enough proof. Flip the coin over and look at it from a tax view point.

Mr X says he spent £100 on new items at a car boot and puts this in his expenses. This may be perfectly honest and above board BUT the other view point (& one the tax office may well go with )is that Mr X may have pocketed the money and not actually brought anything with the cash. so why should the Inland Revenue beleive Mr X has purchased goods with the cash as he has no proof of purchase. And in their eyes you are claiming expenses you cant prove.

This happened to one of our clients recently and the Inland revenue refused point blank to accept the purchase without proof. (this case has been going on for nearly a year arguing over petty things like no receipts) Even though they admitted the goods could be brought at a car boot and they may well have been bankrupt stock the sellar was getting rid of or a shop closure.

Proof of purchase means the receipt must be able to be traced - sellars name & address or business name need to be evident - or how can the goods be traced back to a sellar, think about it - its no different than putting Mickey mouse on a receipt really.

I suggest you ring the local tax office they can be very helpful more so now than in earlier years. They will advise you if you are worried. Or ask your accountant if you have one. You may need to register self employed also.

Or go to tax office saying your thinking of buying items and reselling them and what do you need to do - dont put your head in the sand, sort it out now these things catch up with you - Ive seen it happen so many times. It can be traumatic for you if you dont get it right from the start. Then its all plain sailing and you have nothing to worry about.

GIVE THE TAX OFFICE A RING OR CALL AND SEE THEM - that way you have no worries later down the line, they make the rules, every area has different views.its the only way to be sure