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Posted Tue, 19 Oct 2021 22:05:56 GMT by Fırat Kaya
Hello, I want to establish a Limited Company in UK, but I have some questions. We are from Turkey. We sell virtual products, we work with a 20% profit margin. We sell in-game currency and products for online games. We supply these products from individual customers who want to sell on our website. For this reason, we cannot receive invoices from these users. We buy these products from our customers in Europe. Although 90% of our sales are in Europe, we sell to the whole world. Are money transfers that we send to individual users to purchase products counted as expenses while filing tax returns? What do we need to be able to prove it as an expense without a receipt? Thanks in advance!
Posted Wed, 27 Oct 2021 10:25:29 GMT by HMRC Admin 19
Hi,

You must keep adequate records to support all entries made on the Corporation Tax return which includes the accounts and Corporation Tax computations.

Information about records and expenses can be found here:

Running a limited company

and within HMRC’s Business Income Manual at BIM40000 onwards:

BIM40000 - Measuring the profits (specific rules & practices) - receipts & deductions: contents  

Thank you.
 

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