Commentary

V7.422 Supply—lost or stolen goods

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.422 Supply—lost or stolen goods

Part V7 Tax planning | Commentary

V7.422 Supply—lost or stolen goods

It is important that any client who suffers a loss of goods for any reason, eg theft, fire, employee error or accident, retains full records concerning the circumstances of the loss. This is to reduce the risk of a problem with HMRC on a VAT visit. Consider the situation at Example 5.

Example 5

An officer from HMRC is carrying out a routine VAT visit, and notices that ABC Computers Ltd purchased 50 computers on a special shipment from America. The officer identifies that 30 have been sold (and output tax correctly charged on sales invoices), nine

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