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November11
November11 Registered Posts: 19 New contributor 🐸
Hi

If a legitimate business expense is diallowable for tax purposes can I still claim the input VAT?

If no VAT is being claimed for a business expense is it permissable to use details taken from a bank statement or do I need a receipt/invoice?

If a limited company has received an investment with no requirment to repay what is the credit side of the entry...Dr Bank, Cr ?....

Many thanks for any guidance offered

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  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    If a legitimate business expense is diallowable for tax purposes can I still claim the input VAT?
    Depends if it's allowable for VAT - different rules may apply but chances are it follows the tax treatment - check the VAT rules for that specific item.

    If no VAT is being claimed for a business expense is it permissable to use details taken from a bank statement or do I need a receipt/invoice?
    Yes but it's not best practice. If it's obvious that it's a business expense from the name on the statement then I would include it. Advise your client that ideally they will need to provide a receipt in the case of inspection.

    If a limited company has received an investment with no requirment to repay what is the credit side of the entry...Dr Bank, Cr ?....

    Dr Bank, Cr Investment (usually other income)

    :)
  • November11
    November11 Registered Posts: 19 New contributor 🐸
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    Thank you so much for your prompt and helpful reply

    It is very reassuring to be offered good advice when feeling a little uncertain
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    November11 wrote: »
    Thank you so much for your prompt and helpful reply

    It is very reassuring to be offered good advice when feeling a little uncertain

    No worries.

    Just remember, you don't really know who people are on a forum so while I like to think my advice is good, when acting for a client you shouldn't rely on forum advice alone (especially if it's just one answer), but use it as a springboard to go and look it up in the relevant guidance for yourself :) Forums are excellent for reassurance though, especially if you're working alone!
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