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Discount Reports

27/02/2018 14:56:06
Hi, we are operating a multi-sited restaurant across different cities. Discount codes have been set up at tills for directors' use while they are dining at restaurant. Bills are signed off/authorized by themselves and then the restaurant processed this bill under the separate discount code solely used for directors.

How much details/how depth of the details we should keep in record for this discount in terms of tax/regulation purpose?

Thank you.
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Re:Discount Reports

27/02/2018 15:59:20
Hi
Your enquiry is not clear. Please confirm what area of tax regulation you are referring to.Are you referring to job related benefits or company accounts?
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Re:Discount Reports

19/03/2018 12:35:03
Hi

Actually I meant for both in job related benefits and also company accounts aspect.

Thank you

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Re:Discount Reports

21/03/2018 15:42:50
Hi there,

I have now submitted your query for technical advice and will get back to you as soon a s possible.
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Re:Discount Reports

22/03/2018 12:48:38
The discounts would not need to be recorded for PAYE/NIC purposes as there would be no actual cost to the employer therefore no benefit to declare.
I have further referred the matter now to my technician for details re company accounts and wil update regarding this ASAP..
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Re:Discount Reports

22/03/2018 13:03:57
Hi

Thanks for your reply.

In regards to the employee like Operation Manager/Director that have their own discount code at our restaurant so when they have business meeting at site they could authorize the bill gone into their own discount code. We always ask them to provide sufficient details like who you were with, name of the company that people you were and the purpose of the meeting so we could work from there to classify if it's genius business expense or mixed with personal purchase. If they fail to provide sufficient details, we would classify them as personal entertainment and submit to HMRC for tax purpose, is that correct way to deal with them?

Thanks
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Discount Reports

22/03/2018 17:01:00
Hi KH,
I've passed this latest information on to our technical advisers and will get back to you as soon as possible with a reply
Thanks
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Discount Reports

05/04/2018 07:30:16
Hi KH,
I now have the reply regarding the company accounts aspect . Sorry for the delay.

There are no specifically prescribed records to be kept for the purposes of Corporation Tax. It depends on how each business is run. Businesses are required in general to keep accounting records that include :-

All money received and spent by the Company
Details of Assets owned by the Company
Debts the Company owes or is owed
Stock the Company owns at the end of the financial year
The stocktakes used to work out the stock figure
All goods bought and sold

Records required to prepare and file annual accounts and Company Tax Returns would include :-

All money spent by the Company for example receipts, petty cash books, orders, delivery notes, discounts received etc
All money received by the Company, for example invoices, contracts sales books and till rolls, discounts allowed etc
All other relevant documents such as bank statements and correspondence.

In short, a Company needs an audit trail to evidence how they have arrived at the figures they have used in their accounts/Returns. In this case for example, specific reference has been made to till rolls / discount codes information. If the till rolls contain complete information about a particular transaction, that should suffice. In basic terms, what a Company has to ask itself is that if any figures in the accounts/Return were queried or otherwise challenged, can they demonstrate in detail how the figure used has been determined.
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Discount Reports

06/04/2018 09:25:31
Hi KH,
Here's the reply to your earlier post.
A staff discount would not be classed as a benefit as there would be no actual cost to the employer regardless of if it was used for personal use( which most are used for all the time) or business entertaining. As an example staff working for a supermarket don’t get charged on the discounts they receive in store as a benefit.

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