3 Questions

November11

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

Monsoon

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

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

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!