How do people handle cash payments???

locky76

When you buy something for cash, how do you handle it?

• Like buying a few bales of hay
• Buying something off donedeal where the seller insists on cash
• Getting someone local to work on the farm and paying cash

I try and record it and then write a cheque from my farm account and lodge it in my current account, for donedeal i would do likewise but also print off the ad as my receipt.
Don't know how this staxks up with revenue though...

rancher

locky76 wrote: »

When you buy something for cash, how do you handle it?

• Like buying a few bales of hay
• Buying something off donedeal where the seller insists on cash
• Getting someone local to work on the farm and paying cash

I try and record it and then write a cheque from my farm account and lodge it in my current account, for donedeal i would do likewise but also print off the ad as my receipt.
Don't know how this staxks up with revenue though...

Don't think revenue will accept any expenses without a proper receipt.
If a seller insists on cash, it's because he wants it tax free.

bob charles

One prominent member on here, just shoves them in his bulging back pocket

td5man

bob charles wrote: »

One prominent member on here, just shoves them in his bulging back pocket

Holiday fund :cool:

Farmer

rancher wrote: »

If a seller insists on cash, it's because he wants it tax free.

...or just doesn't want to get stung by a dodgy cheque of fake bank draft.

I hear such people are out there!

td5man

Farmer wrote: »

...or just doesn't want to get stung by a dodgy cheque of fake bank draft.

I hear such people are out there!

They have been around for a while, i know :mad:

freedominacup

locky76 wrote: »

When you buy something for cash, how do you handle it?

• Like buying a few bales of hay
• Buying something off donedeal where the seller insists on cash
• Getting someone local to work on the farm and paying cash

I try and record it and then write a cheque from my farm account and lodge it in my current account, for donedeal i would do likewise but also print off the ad as my receipt.
Don't know how this staxks up with revenue though...

What cash payment would that be? I never said anything about cash payments. What are you talking about? Shhhhh.

Farmer Pudsey

I always try to pay by cheque, if for cattle or something off DD I allow farmer to lodge and clear before I collect. If I have to pay cash for something like a van I bought last year I have a receipt book the lucky vendor sign on the dotted line.

This will be a big issue post 2014 when cheque's become a thing of the past. If you pay cash get a carbon receipt book.

rancher

Farmer wrote: »

...or just doesn't want to get stung by a dodgy cheque of fake bank draft.

I hear such people are out there!

They won't mind giving a proper reciept then... will they!!!!!

reilig

locky76 wrote: »

When you buy something for cash, how do you handle it?

• Like buying a few bales of hay
• Buying something off donedeal where the seller insists on cash
• Getting someone local to work on the farm and paying cash

I try and record it and then write a cheque from my farm account and lodge it in my current account, for donedeal i would do likewise but also print off the ad as my receipt.
Don't know how this staxks up with revenue though...

I do the same, if I have to pay cash for something I ususlly run a cheque through my current account for it. I understood that a cheque stub along with corresponding statement was good enough to satisfy revenue?

Farmer Pudsey

reilig wrote: »

I do the same, if I have to pay cash for something I ususlly run a cheque through my current account for it. I understood that a cheque stub along with corresponding statement was good enough to satisfy revenue?

Provided cheque is cashed by vendor not into your own account.

reilig

Farmer Pudsey wrote: »

Provided cheque is cashed by vendor not into your own account.

How can they trace the cheque to the vendor's account? On a statement it only brings up the cheque number. What if the vendor endorses and cashes it in a shop or a co-op and the shop/co-op lodges it into their account?

I think revenue are relying on honesty and good will here. If you have to pay in cash, why shouldn't you be able to put it against your accounts. It is legitamate to record it in a receipt book and put it into your accounts. For me, putting it in a cheque stub is just a way of keeping it with other expenses and keeping it normal. The vendor is required to be honest and declare cash that he/she receives - revenue don't care if you buy in cash or not so long as you record it. They want you to declare if you receive cash however! This isn't the buyer's responsibility.

Farmer Pudsey

reilig wrote: »

How can they trace the cheque to the vendor's account? On a statement it only brings up the cheque number. What if the vendor endorses and cashes it in a shop or a co-op and the shop/co-op lodges it into their account?

I think revenue are relying on honesty and good will here. If you have to pay in cash, why shouldn't you be able to put it against your accounts. It is legitamate to record it in a receipt book and put it into your accounts. For me, putting it in a cheque stub is just a way of keeping it with other expenses and keeping it normal. The vendor is required to be honest and declare cash that he/she receives - revenue don't care if you buy in cash or not so long as you record it. They want you to declare if you receive cash however! This isn't the buyer's responsibility.

What is to stop me from letting on I am buying silage from relig and putting 200 euro from a cheque stub through the account. If I have a reciept signed by relig all wwell and good. I agree with you re endorsed cheque however there is a chance that it can be traced through the other persons purchasses, If he uses it in a co-op etc it is more than likly it was for agri good so no real advantage.

Strictly speaking if you pay in cash I would advise that you get a reciept. It is good practice if nothing else, Get a carbon reciept book and getr vendor to sign. If you pay by cheque and he endorses it and cashes it elsewhere you have in good faith given him acheque. If it is cash the revenue can ask you where is the reciept. In reality they can for acheque as well but are less likly to be as fussy over same if you have name and details of vendor as well as item purchassed on stub.
More and more accountants want reciepts for everything.

reilig

I think that you are over complicating it for the OP. You have no responsibility for the vendor. When I last had an inspection on my farm accounts, cheque stubs were perfectly adequate for them. I was also in a position to show the corresponding bank statements which matched the cheque stubs - but this was not requested.

As for your honesty as an individual - I cannot vouch. You could buy turf by cheque and write it in the stub that it is hay. At the end of the day, it's self assessment. Revenue rely on you being honest and making honest returns. If you don't do this, it's your issue, not mine! How you do it, and how you record it is of personal taste and revenue don't really mind, just so long as you record it. I have no doubt that half of the businesses in the country (not alone farmers) cook the books a little bit. That's their own issue. Not yours or mine. So long as I record a cash payment through my cheque book or in a receipt book, I'm happy enough to be keeping within the law and based on previous experience, revenue are happy enough with me too!

My accountant is perfectly happy with cheque book stubs!

Farmer Pudsey wrote: »

What is to stop me from letting on I am buying silage from relig and putting 200 euro from a cheque stub through the account. If I have a reciept signed by relig all wwell and good. I agree with you re endorsed cheque however there is a chance that it can be traced through the other persons purchasses, If he uses it in a co-op etc it is more than likly it was for agri good so no real advantage.

Strictly speaking if you pay in cash I would advise that you get a reciept. It is good practice if nothing else, Get a carbon reciept book and getr vendor to sign. If you pay by cheque and he endorses it and cashes it elsewhere you have in good faith given him acheque. If it is cash the revenue can ask you where is the reciept. In reality they can for acheque as well but are less likly to be as fussy over same if you have name and details of vendor as well as item purchassed on stub.
More and more accountants want reciepts for everything.

delaval

locky76 wrote: »

When you buy something for cash, how do you handle it?

• Like buying a few bales of hay
• Buying something off donedeal where the seller insists on cash
• Getting someone local to work on the farm and paying cash

I try and record it and then write a cheque from my farm account and lodge it in my current account, for donedeal i would do likewise but also print off the ad as my receipt.
Don't know how this staxks up with revenue though...

You are keeping a record of your transaction and declaring thats all revenue want. What the other party do with the cash declare/not is not your concern.
By the way what do you do if you receive cash?

epfff

you must be able to show where you got cash from yourself often the mistake that people make.also you must show drawings that you are not living on fresh air

Bigbird1

Farmer Pudsey wrote: »

I always try to pay by cheque, if for cattle or something off DD I allow farmer to lodge and clear before I collect. If I have to pay cash for something like a van I bought last year I have a receipt book the lucky vendor sign on the dotted line.

This will be a big issue post 2014 when cheque's become a thing of the past. If you pay cash get a carbon receipt
book.

are cheques to become a thing of the past?

Farmer Pudsey

Bigbird1 wrote: »

are cheques to become a thing of the past?

Yes I think that it is next year that cheques will cease to exist. After that it will be by electronic transfer or cash..

reilig

Farmer Pudsey wrote: »

Yes I think that it is next year that cheques will cease to exist. After that it will be by electronic transfer or cash..

Or bank draughts which they will charge extortionate prices for.

Tipp Man

The targert was for cheques to be discontinued from 2016 - I'm not sure if that has been pushed back or not - there was talk that it might be

The cheque guarantee scheme ended on 31st Dec 2011

lakill Farm

To be honest once you keep a record of cash expenses you can claim them.

ie 26 March 2013 €25 x 10 bales of silge of Seamus down the road. They may ask you for details and then they go to him to see did he declare the sale.

selling silage is a tricky one when your the one selling it. ie they may work out how much you had cut, and how much you should have used and work out what you had at beginning of the year.

not really to hard with calves . ie cow calves take away tags used minus ones in hear, minus dead ones minus sold ones. difference is "mising one"

hugo29

delaval wrote: »

You are keeping a record of your transaction and declaring thats all revenue want. What the other party do with the cash declare/not is not your concern.
By the way what do you do if you receive cash?

spend it before the oh does:D

Dampintheattic

I thought you could not use a cheque made out to yourself to settle a bill at a third party such as the coop store.
Thought that was banned a few years ago. I know my local store will not accept a third party cheque.