Keeping receipts for all your business expenses might seem like a chore, but it’s crucial when claiming expenses or reclaiming VAT. That said, if you’ve lost a receipt or didn’t get one, all is not lost! Let’s go through what you need to know to claim business expenses when a receipt is missing.
Are Receipts Really Necessary?
Receipts are the best way to prove that an expense was legitimate and related to your business. HMRC uses them as evidence if your accounts are ever reviewed.
But life happens—receipts get misplaced or weren’t provided in the first place (looking at you, parking meters! ). The good news? HMRC may accept claims without a receipt if you have alternative evidence.
How to Claim Without a Receipt
If you don’t have a receipt, HMRC might still allow the claim, provided you can prove the expense was for your business.
1. Use Alternative Documentation
Replace the missing receipt with other evidence, such as:
- Bank or credit card statements: Show the date, amount, and vendor details.
- Invoices or order confirmations: These can often be retrieved online or from the supplier.
- Email trails: If you’ve booked online, there’s usually an email receipt or confirmation.
2. Record Key Details
Even if you don’t have a receipt, keeping a written log is essential. Note down:
- What the expense was for.
- The date, amount, and location of the purchase.
- Why it was needed for your business.
This provides HMRC with a clear trail of evidence to justify the claim.
What About VAT Reclaims?
VAT is a little stricter. To reclaim VAT without a VAT invoice, HMRC requires alternative evidence to confirm the purchase was business-related and that VAT was charged. If you don’t have the invoice, try to:
- Obtain a copy from the supplier.
- Provide additional records, like bank statements, showing the VAT-inclusive payment.
If in doubt, check out HMRC’s VAT guidance here.
Examples of Common Expenses Without Receipts
Some expenses naturally lack traditional receipts but can still be claimed:
- Parking fees: Pay-and-display machines don’t always issue tickets.
- Mileage costs: Keep a mileage log instead!
- Small cash purchases: Write down the details in a cash expenses log.
Stay Organised to Avoid Future Issues
- Scan receipts immediately: Use apps like Receipt Bank or QuickBooks to digitise your receipts.
- Request receipts wherever possible: Even small businesses can provide handwritten ones.
- Log cash expenses right away: A simple spreadsheet can save you a headache later.
What If HMRC Questions Your Claim?
If HMRC investigates and finds a missing receipt, they’ll ask for alternative evidence or a detailed explanation of the expense. Without sufficient proof, your claim could be rejected. So, stay proactive!
No Receipt? No Problem (Sometimes!)
While it’s always best to keep receipts, you can still claim valid business expenses without them, provided you have alternative evidence. The key is transparency and solid record-keeping.
Need help sorting your records or navigating tax rules? Dead Simple Accounting is here to help! Contact us today for stress-free accounting advice.
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