Hi all, I am doing my bank reconciliation for 2009 and I am missing lot of receipts and invoices. cca 2K All these expenses are 100% business related. Do you think that I still claim them as tax allowable expenses ?
I am small sole trader (hairdresser) ,not VAT registered.
Worse thing you can do is put them in sundry expenses with no description or a description such as ' missing invoice/receipt'. Once the gross margin and profitability is in line with other years (or competitors) no questions should arise.
Personally, I would claim them and give a good description on your accountancy package or excel spreadsheet that no questions should arise.
Thank you very much for your help. 2009 was my first year as the sole trader so I don't have lot of experence with bookeeping or taxes. I was wondering would you be able to help me with motor expenses too? I don't have hair salon but instead I visit clients in their homes. Can I claim petrol expenses as revenue expenses at their full value? I read somewhere that I can claim only way there ( to the client) and I cannot claim the way back as it is the way back to my home. Should I keep milage book? Thank you. Janka
In future, yes, it's better to keep a mileage log.
For 2009: you are allowed to claim the expense of returning after visit to the client. You should be able to work out rough mileage figures from your appointment book. Then take that as a fraction of your total car costs over the year, and enter that figure as your travel expense.