Why keeping records is important
A recent case (D White v HMRC) highlighted the importance of keeping records for tax purposes.
The case involved private expenditure on a company credit card.
The Director used the case for business and private expenditure, but kept no accurate records to calculate the amount of private expenditure. HMRC therefore raised assessments.
The taxpayer appealed but could not prove that HMRC’s figures were incorrect; there was nothing to show that all private expenditure had been reimbursed, or that the director’s loan account had been properly adjusted.
On that basis the tribunal had no choice but to dismiss the appeal and find for HMRC.
Date: 12th March, 2015
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