Purchasing stock and receipts

arctictree

Just wondering what you lads do in your accounts when you buy stock from another farmer and don't get a receipt. I have bought stock off donedeal a few times this year and paid cash. This is recorded in my accounts. What happens if I am audited and I have no receipts? Cheers

nhg

Well if it's Livestock you will also have the transaction recorded in your herd register so that in my opinion be like proof/receipt.

I would assume that any other types of purchases cannot be accounted for in your accounts if no receipts/invoices. Unless the payment can be seen easily going through your bank account or cash account where can you prove you got the cash from - that's where the words 'Black Market' come from.

Farrell

Actually I don't think it counts.
There is a strong problem in farming if not getting receipts.
I don't know how we can combat this issue, & it does cause problems

just do it

Farrell wrote: »

Actually I don't think it counts.
There is a strong problem in farming if not getting receipts.
I don't know how we can combat this issue, & it does cause problems

+1

arctictree

Farrell wrote: »

Actually I don't think it counts.
There is a strong problem in farming if not getting receipts.
I don't know how we can combat this issue, & it does cause problems

Do you mean that you can't offset non receipted expenditure against income?

Nekarsulm

Withdraw the cash from your account, and make sure the bank clerk includes the description "cash for 23 lambs, done deal" or whatever, to appear on your statement.
Let the other lad worry about an audit/his tax bill.

EDIT. Print off a copy of the ad. as well, before it disappears from the website. Can't hurt.

Milked out

I assume the movement permit would surely cover you. its an official document with a notification, buyer and seller copy.

Nekarsulm

Milked out wrote: »

I assume the movement permit would surely cover you. its an official document with a notification, buyer and seller copy.

It proves the movement took place, or at least, was sanctioned to take place.
Proving how much you paid for the stock, that's the thing.

Milked out

Nekarsulm wrote: »

It proves the movement took place, or at least, was sanctioned to take place.
Proving how much you paid for the stock, that's the thing.

yeah, i guess the name on cheque matching the sellers is about it with that so, seeing as date of payment may not always match the date of movement also.
When cheques go Id sat this will be even more of an issue. Does this thing on Sept 19 effect us? must ring the bank mon.

Milked out

Milked out wrote: »

yeah, i guess the name on cheque matching the sellers is about it with that so, seeing as date of payment may not always match the date of movement also.
When cheques go Id sat this will be even more of an issue. Does this thing on Sept 19 effect us? must ring the bank mon.

googled it there
http://www.citizensinformation.ie/en/money_and_tax/personal_finance/financial_institutions/national_payments_plan.html

Farrell

arctictree wrote: »

Do you mean that you can't offset non receipted expenditure against income?

No if you don't have a receipt, it doesn't count in an audit.
Cheque book stubs don't count, so I'm told.