Invoices??????????

Ems1 · 16-08-2007, 10:06 PM

Hi,I was just wondering if anyone can answer a question for me?My supplier says that he will supply me with a paypal invoice,is this good enough for the taxman?

**greedyboy** · 16-08-2007, 10:09 PM

Get a hard copy to back it up.

Ems1 · 16-08-2007, 10:48 PM

so a print out of that paypal invoice is not good enough is that what you are saying greedyboy?

adam2007 · 16-08-2007, 10:52 PM

I guess it really depends on the product , how many invoices we are talking about and the amounts.

Make sure you have all your suppliers details on hand in case the tax man wants to look into them further.

Ems1 · 16-08-2007, 11:02 PM

Does the type of product and amounts really have any relevance? surely if the taxman needs to see an invoice then he needs to see an invoice regardless of what the product is,please correct me if i am wrong.

**greedyboy** · 16-08-2007, 11:26 PM

I would always ask for a proper company issued invoice and not a paypal one. I know ebay invoices are not officially accountable so the same may apply for paypal.

Any respectable company will issue a proper invoice.

Ems1 · 16-08-2007, 11:45 PM

I was thinking the same things to be honest greedyboy,here is a few lines of text from an email i recieved from him what you think? :
"I don't really send detailed info when I ship international other than
package contents and declared value for the customs. If you need anything
special requested I can try to accommodate."

Let me know your opinions guys!!!

**Pete** · 17-08-2007, 12:26 AM

I can't advise specifics for the UK, but in general the tax people are going to be more impressed by seing the money moving in and out of your bank accounts than they are a piece of paper.

If you have a record of the money going out, any sort of receipt and some sort of packing list or even customs paperwork on the goods, you should be covered.

In fact, more important than an Invoice, which is saying "You Owe", would be the PayPal Recipt, which is saying "We have received your payment."

Most tax people are looking at formulas, relationships, etc. If your cost of goods and your resulting income fall into line for your industry, they should not get too interested in line item detail.

Much more questionable would be claimed expenses and things that would cause your Net Income to be out of range with your Gross Receipts.

I'd be surprised if there is anyone on this forum who can say they have been involved in an audit that got down to line item questioning of invoices. A review of your bank account can often tell them all they need to know.

DSC · 17-08-2007, 07:45 AM

I agree with Geedyboy you really need to get a proper invoice, perhaps make a template with all the info you want on it (company address, item, unit cost etc). Email it to them and ask them to fill it in and send it you back.

Can't go wrong that way.

**greedyboy** · 17-08-2007, 08:33 AM

Yes, what DSC has recommended is one way know as 'Self Billing'. Usually used by larger companies when there are complicated transactions with credits/commission payments involved.

However I'd be dubious of a company not willing to provide an invoice. It would seem they are not running a legit business as they are not willing to comply with even the basic rules of business/accountancy.