THIS IS NOT A VAT RECIEPT

[Tannedbaldhead]

I've been purchasing equipment and materials from suppliers online an having my staff pick them up from store.
Payments have been by credit card with proof of purchase being sent by email.
Been doing this for as long as I remember.

All good.

Or rather it has been till I printed off the latest batch of "receipts" and handed them into accounts.

The proof of payments show net amount, VAT paid, gross amount, method of payment and the time and date of payment. They also give the sellers business address and VAT number. For as long as I remember these emails have been printed off handed into accounts as receipts, processed and filed accordingly. The details are recorded in our books of original entry and used to calculate the company's VAT and tax returns.

Yesterday someone noticed the words "THIS IS NOT A VAT RECIEPT" printed at the bottom of all these documents is not not accepting my "don't worry it'll be fine" reassurance.
My argument is with the information I detailed above being available it is fine to use them as receipts. "Autistic" accounts clerk is being too literal in life when he can't accept that just because the words in bold capital letter state "THIS IS NOT A VAT RECEIPT" doesn't mean you can't use it as a VAT receipt.

Can someone confirm these documents would stand up HMRC scrutiny should it ever occur or have I buggered up?

[Tannedbaldhead]

Countdown said:

Are payments made at the same time as you are ordering the goods (ie "Upfront") or are you buying on credit?

Paid online in advance. Standard click and collect.

[Tannedbaldhead]

Too many heads are in the wrong place here. They are concentrating way too hard on whether or not using these receipts is technically wrong which no-one really cares about.
For those who live in real life the far more important question is how likely are we to get caught out and if we do it how likely are wee able to sweet-talk our way out of this should HMRC ever notice?
My goal is to breeze through business relentlessly following the path of least resistance. Am certain that with a VAT number, supplier's address, proof of payment and delivery, the cost of goods and VAT paid all being available it has to be an incredibly pedantic tax inspector who is going to make anything of it. So confident am I in this position I'd quite happily stake our financial director's freedom on it.

[Tannedbaldhead]

PF62 said:

Tannedbaldhead said:

it has to be an incredibly pedantic tax inspector who is going to make anything of it

Have you ever met anyone from HMRC?

Worse experience was as a young freelance surveyor. I reckoned that as a QS doing my own tax and VAT returns would be easy.
Am not sure whether I was chosen at random or whether Customs and Excise felt that as I didn't use an accountant I was worth a look but regardless a VATman came to carry out an in depth audit of my books.
He found a few anomalies, mainly to do with what quarter I paid certain amounts on money based on me paying on the issuing and receiving of invoices rather than on my receipts and making of payments.
My "It all works out in the end" earned a very withering look followed by "what we are looking for is the payment of the right amount of tax AT THE RIGHT TIME". He wasn't impressed that I had claimed 100% of the VAT paid on my leased car and one or two other other issues. The guy was straight down the line and also showed me where I was making mistakes that were costing me money. He wasn't here as a money making exercise he assured me. The exercise was to ensure Customs and Excise were paid the "right amount of tax at the right time". He said that a lot throughout his visit.
At the end he informed me my returns were "not a bad effort.,,,,,, However" and at this point he took on a demeanour that scared the st out of me. "Not a bad effort is not good enough. It has to be spot on." Over a couple of years I was £200-£300 short. He then told me the amount of penalties and interest these errors would cost me. If I could remember the amount I'd tell you. All I can remember was feeling sick when he told me.
Then he said he saw no evidence of an attempt to defraud so would wave the penalties and take payment plus interest, advised I used an accountant to make ongoing returns and left with a cheque in his briefcase.

So, in answer to your question, I have met a taxman, found him honest, fair, able to judge whether or not I was "at it" and happy to exercise some personal discretion so as not to crucify me inspite of having the opportunity to do so.

[Tannedbaldhead]

Eric Mc said:

How long ago was that?

Late 1980s

[Tannedbaldhead]

Eric Mc said:

Tannedbaldhead said:

Eric Mc said:

How long ago was that?

Late 1980s

Makes sense.

HMRC don't carry out these types of checks any more. It's about ten years since any of my clients had a visit from a VAT Inspector. The old style compliance visit is now more or less abolished.

More's the pity. I looked upon my visits from Customs and Excise and HMRC as a very worthwhile experiences. They taught me how tax collectors think and what they are after from the tax payer, set me up for better returns in the future and with the inevitable £200-£300 cheque in their briefcase (usually a relief as I was often liable for, waved, penalties for multiples of these sums) the cost of the VATman's afternoon's work was covered.
Often the old ways were the good ways. The best aspect of these visits was sitting face to face over a desk nose buried in the books of original entry the auditors could developed a 6th sense as to who was a crook and were worth the watching, who was a shambles in need of some serious words of advice and who were the good guys.
On top of that I also found them pleasant and very helpful.