PayPal proof of spend?

meno_2

I often pay for services thru paypal for my self employed business but as the people i pay are not a business i dont get an invoice etc so i just make a note of their name and what i paid for, is this sufficient for tax inspection purposes as i have no real hard proof that i got what i paid for when it comes to expenses.

any ideas anyone?

Thanks

Debt_Free_Chick

It's fine - but I'd print off the Paypal invoice.

Just remember that the service has to be wholly and exclusively in respect of your business activities to qualify as an allowable deduction.

meno_2

Debt_Free_Chick wrote: »

It's fine - but I'd print off the Paypal invoice.

Just remember that the service has to be wholly and exclusively in respect of your business activities to qualify as an allowable deduction.

Thanks, thats what ive done, its just the person im paying is just "an email address" to HMRC, never mind

Yep its wholly and exclusively in respect of my business

Cheers

Debt_Free_Chick

meno wrote: »

Thanks, thats what ive done, its just the person im paying is just "an email address" to HMRC, never mind

Some of the people I pay give me handwritten receipts .... and they are barely legible!!!! :rotfl:

Under Self Assessment, you are expected to "own up" - both to the tax you owe and to the allowances you claim. So long as your conscience is clear and you have "evidence" you should be OK. And you really only need the receipt as "evidence" should HMRC decide to investigate you - which is quite rare, unless you've given them cause to :eek:

meno_2

Debt_Free_Chick wrote: »

unless you've given them cause to :eek:

Im just concerned as my earnings flutuate so much (like 8k one year - 80k the next) it may trigger an inspection.

Thanks