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Tax expense - business item bought by friend and repaid.

Hi

I'm getting my accounts ready to do my self assessment tax form.
I have a question please.

I was with a friend and buying some stationary for my very small sole trader business. i tried to pay with my business card as usual but it was cracked and wouldn't work at the till. My friend paid on her card and I gave her the cash later.
I have the recepit. Can I use this and put it through my accounts as a business expense, which it was, even though it was on her card? the amount is fairly small £25.

Thanks for any help. :)

Comments

  • antrobus
    antrobus Posts: 17,386 Forumite
    Yes.

    It doesn't matter how you paid for it. It's an expense.
  • PlutoinCapricorn
    PlutoinCapricorn Posts: 4,598 Forumite
    Part of the Furniture Combo Breaker
    You keep receipts in case HMRC ever decide to enquire about an aspect of your business. In most cases HMRC don't ask for details and evidence.

    The amount is not high, and if HMRC ever did ask they would accept this explanation provided that you had not got a large number of other receipts for huge amounts and no evidence that you had spent your own money!
    Who having known the diamond will concern himself with glass?

    Rudyard Kipling


  • magic57
    magic57 Posts: 738 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Thank you very much for your help.

    I imagine it would help if I got my friend to sign a receipt that I had given her the cash?
  • PlutoinCapricorn
    PlutoinCapricorn Posts: 4,598 Forumite
    Part of the Furniture Combo Breaker
    I see that, like me, you are an ultra conscientious sort of person!

    I too like to tie up loose ends and to be prepared for possible problems.

    Ask for a written statement if this makes you feel more comfortable.
    Who having known the diamond will concern himself with glass?

    Rudyard Kipling


  • magic57
    magic57 Posts: 738 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    I see that, like me, you are an ultra conscientious sort of person!

    I too like to tie up loose ends and to be prepared for possible problems.

    Ask for a written statement if this makes you feel more comfortable.

    Well I'm terrified of getting it wrong!

    I'm glad this forum is here as everyone is so helpful. Form filling is not my best subject!
  • PlutoinCapricorn
    PlutoinCapricorn Posts: 4,598 Forumite
    Part of the Furniture Combo Breaker
    Form filling?

    Does this mean that you are not filing your tax return online?

    Is this for the 2012/2013 tax year?
    Who having known the diamond will concern himself with glass?

    Rudyard Kipling


  • magic57
    magic57 Posts: 738 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Form filling?

    Does this mean that you are not filing your tax return online?

    Is this for the 2012/2013 tax year?


    No just using the term in general. :)

    I will be filing online for 2012/13. Thanks
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