London: +44 (0)20 7236 2601
St Albans: +44 (0)1727 869141
Rickmansworth: +44 (0) 1923 771010
Milton Keynes: +44 (0)1908 605552

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
Author: Cathy Corns

SHARE THIS

Articles from this Author

Contact Business Service Partners

Choose from the drop down menu below to select a Partner to contact.

Tweet

Chartered accountants @mercerhole has helped an organisation to preserve more than 190 jobs chambermk.co.uk/news/mercer-ho…

Click here to see photographs from our London Christmas Reception at @plaisterershall bit.ly/2j36ZvJ pic.twitter.com/j4NZWVw8RM

Follow

LinkedIn

For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole

Click here to follow us on LinkedIn