XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: GB only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "Expenses with a Cancelled Business" XBert detects when you record expenses or payments to a supplier whose Company Registration Number (CRN) is cancelled or does not exist on the Companies House register. This helps prevent inaccurate tax reporting and ensures you only trade with verified, active businesses.
What it does
XBert scans all suppliers in your accounting system who have a CRN listed. It matches those CRNs against the official Companies House database. If the supplier’s CRN is cancelled or missing from the register, and there are expense journals linked to the supplier, XBert generates an alert.
How it works
This alert runs for UK tenants only. XBert checks:
Whether a CRN is entered for a supplier.
If that CRN is either marked as cancelled in Companies House or does not exist in the registry at all.
Whether there are expense entries (journal activity) involving that supplier.
If all conditions are met, the alert is raised to flag the potential risk of dealing with a business that may no longer legally exist.
Example / Use Case
Bill runs a pizza shop and purchases a new oven for £6,000 from a supplier he’s used in the past. Unbeknownst to Bill, the supplier’s company has been dissolved and its CRN is no longer valid.
Later, during a routine tax review, HMRC notices that Bill has claimed tax deductions for a transaction with an unregistered business. Bill is required to repay £2,700 in withholding tax and faces further scrutiny of other transactions.
Had XBert identified this earlier, Bill could have verified the supplier's CRN or sourced an alternative supplier, avoiding financial loss and compliance risk.
Accounting software
Xero, MYOB, QuickBooks
Which countries it supports
United Kingdom
Processes
This alert is part of the Bookkeeping process group and focuses on purchases and accounts payable (AP) compliance. To resolve this alert:
Click RESOLVE NOW to review the supplier in your accounting software.
Check the supplier’s CRN on the Companies House website.
If the CRN is incorrect, contact the supplier to request updated company information.
Once confirmed, update the CRN in your accounting software for future accuracy.
If the supplier cannot provide a valid CRN, avoid making further payments until this is resolved.
Only transact with active and registered suppliers to ensure tax compliance and reduce financial risk.