Missing Receipts
Receipts and invoices help prove that a cost was incurred for business purposes. They support your accounts, tax return and any VAT claimed.
However, losing a receipt does not automatically mean the expense must be excluded.
Can You Claim an Expense Without a Receipt?
An expense may still be allowable if you can demonstrate that it was genuinely incurred for the business. Other evidence could include a bank statement, emailed confirmation, supplier statement, contract, payment confirmation or correspondence with the supplier.
Add a clear note explaining what was purchased and why it was needed. A bank statement proves that a payment was made, but may not establish exactly what was bought or whether there was personal use.
The normal rules for business expenses still apply. Personal costs are not allowable simply because they were paid through the business account.
Can You Reclaim the VAT?
The rules for VAT are stricter. A VAT-registered business should normally hold a valid VAT invoice or receipt before recovering input VAT.
If a £120 business purchase is supported by other evidence but the VAT invoice cannot be obtained, the full £120 may be recorded as an expense, with no VAT reclaimed. HMRC can consider alternative evidence in some circumstances, but this should not become the standard approach.
What Should You Do?
When a receipt is missing:
- Search emails and online supplier accounts.
- Ask the supplier for a duplicate.
- Check your accounting software.
- Review the bank or card statement.
- Record the purchase and its business purpose.
- Identify any personal element.
- Avoid reclaiming VAT without suitable evidence.
Never create or alter a receipt. If records genuinely cannot be reconstructed, estimated or provisional figures may sometimes be used on a tax return, but they must be clearly identified.
Preventing Missing Receipts
Upload receipts when purchases are made and attach them to the relevant transactions. A monthly review is easier than searching for a year’s paperwork at the deadline.
Good bookkeeping and record keeping create a clear audit trail and reduce the risk of incorrect expense or VAT claims. Checking documents before completing VAT returns gives you time to obtain replacements.
GMS Accountants helps businesses in Cambridge and Nottingham organise their records and prepare accurate accounts and tax returns. Contact us if you are unsure whether a missing receipt can be supported.
