In the UK, it is possible to claim certain business expenses without a receipt, but this is subject to specific conditions.
When you can claim without a receipt
If the expense is minor, for example, coffee with a client or a parking meter payment, you may still claim it as long as you keep a record of the cost, date, and purpose. If you lose a receipt, you can still claim the expense by providing an explanation and evidence, such as a bank or credit card statement.
Mileage can be claimed
Claims for mileage can be made without receipts, as long as you keep a detailed log of journeys, including dates, distances, and purposes. Some business expenses, like home office use or certain tools, can be claimed at HMRC’s flat rates without receipts too.
Keep evidence of the expense
HMRC requires proof that the expense was incurred wholly and exclusively for business purposes. If no receipt is available, ensure you have alternative documentation, for example, a bank statement or an invoice.
You must record all expenses accurately in your accounts, even if receipts are unavailable. Digital tools or spreadsheets can help with this. Research shows that there are now a record-breaking almost one million self-employed people who are aged 60 and older.
What are the risks of not keeping receipts?
HMRC may disallow claims if they find insufficient evidence. It could lead to penalties during an audit if they suspect inaccurate record-keeping. For cash expenses, always keep a log with details of the transaction.
If you require help with your tax return, consult an accountant to ensure compliance with HMRC guidelines. Evesham accountants provide reliable financial services to help businesses stay on top of their accounts and taxes. Accountants such as randall-payne.co.uk/services/accountancy/evesham-accountants/ offer a friendly, professional service.
Reduce the risks of claims being disallowed
By adhering to these principles, you can reduce risks while claiming business expenses without receipts. Always use apps or tools to scan and safely store your receipts digitally.