Just a hypothetical question.
As I understand it. If you submit an invoice to a company and they refuse/fail to pay the invoice you can claim the invoice as a loss and it'll reduce your tax liability.
If, given my assumption is correct ( and I'm not an accountant so it may well be wrong). What's to stop me from writing an invoice to one of my friends companies and when they don't pay (nudge nudge), writing off the invoice as a loss and reducing my tax....
Sorry, I'm a bit bored at the moment and am thinking up some creative ways to get one over on Mr Darling...
As I understand it. If you submit an invoice to a company and they refuse/fail to pay the invoice you can claim the invoice as a loss and it'll reduce your tax liability.
If, given my assumption is correct ( and I'm not an accountant so it may well be wrong). What's to stop me from writing an invoice to one of my friends companies and when they don't pay (nudge nudge), writing off the invoice as a loss and reducing my tax....
Sorry, I'm a bit bored at the moment and am thinking up some creative ways to get one over on Mr Darling...
Comment