To allow, or not?

sjkrsjkr Feels At HomePosts: 74MAAT, AAT Licensed Accountant

I have a client in the licensed trade. They have taken over the pub and refurbished it. At the end of the year, there was around £8k of cash that hadn't been accounted for. I asked them about it, and they have given me a list of items that they had spent the cash on. However, they have not given me exact amounts as they did not keep the receipts.

Can I put through some estimated amounts for these expenses, or do I have to put it to drawings as they have not kept any proof?

What would you do? :confused1:


  • Gem7321Gem7321 Experienced Mentor DevonPosts: 1,438MAAT, AAT Licensed Accountant
    I would be advising my client that I will put through their estimated amounts but I will be declaring on the self assessment that the return contains estimated figures and in the event of an inspection they have to be prepared to justify the figures.
  • sjkrsjkr Feels At Home Posts: 74MAAT, AAT Licensed Accountant
    Thanks, that sounds like a good idea - I am sure they have spent the money on the pub, just no paperwork!
  • T.C.T.C. Experienced Mentor Posts: 1,448Registered, Tutor
    They may also have to show physical purchases, ie they may need to show HMRC what they bought or refurbished. As a matter of interest, why is there no receipts? Are you sure this is correct?
  • JawzJawz New Member West MidlandsPosts: 53Registered
    I would do as suggested by Gem7321, but also be firm with your client and advise them that it is their responsibility, to make sure all receipts are kept. You stated 'they did not keep the receipts' what have they done withe receipts then? threw them away or something? it could be tricky for them to justify the expenses to HMRC in the event of an inspection visit.
  • sjkrsjkr Feels At Home Posts: 74MAAT, AAT Licensed Accountant
    Thanks all. Yes, they haven't been in business before and didn't know what they had to keep, so were throwing invoices and receipts away, until they got a book-keeper. Everything is fine after that point. The purchases with no paperwork is for refurbishment and furniture for the bar/restaurant, so can physically be seen.
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