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Where Taxpayers and Advisers Meet

business records check 'cash' question.

keaton
Posts: 18
Joined: Sun Jun 09, 2013 7:52 pm

business records check 'cash' question.

Postby keaton » Sun Feb 22, 2015 3:18 am

One of the questions asked during the phone stage is ' how many of your transactions are in cash?', is this referring to cash paid in hand (for example from a customer at a takeaway)

So are sales online through PayPal classed as paid in cash?

wamstax
Posts: 1864
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: business records check 'cash' question.

Postby wamstax » Sun Feb 22, 2015 12:12 pm

If you take the question as it is posed then clearly the answer would have to relate to the facts as they exist in relation to each particular business

being

on the one hand - cash sales - namely cash received from customers (e.g. the takeaway or sit down meals paid in cash - those that would not be seen from third party control documents such as credit card sales or bank transfers etc)

on the other - cash purchases - namely cash paid out to suppliers or contractors or employees etc (e.g. purchases and other business costs paid for by readies - however the readies come about) and not forgetting owner/directors cash drawings

In other words they are trying to determine businesses where a good deal of the veracity of the records is down to the accuracy (or otherwise) of the records maintained by the trader
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

keaton
Posts: 18
Joined: Sun Jun 09, 2013 7:52 pm

Re: business records check 'cash' question.

Postby keaton » Sun Feb 22, 2015 6:22 pm

I'm wondering into respect of a seller selling online, his payments going through PayPal, would he be classed as cash?
as the money is not owing paid into his hand (so there is actual proof of money being paid due to PayPal print outs)

wamstax
Posts: 1864
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: business records check 'cash' question.

Postby wamstax » Sun Feb 22, 2015 6:43 pm

Paypal wouldn't be cash receipts
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website


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