Claiming business expenses without a receipt in the UK
Losing a receipt is a frustrating reality for sole traders and small business owners. The good news is that losing a receipt does not automatically mean losing your tax deduction.
For Income Tax and Corporation Tax, HMRC's primary legal test is whether the money was spent "wholly and exclusively for the purposes of the trade" under s. 34 of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005).
If you can establish that the cost was genuinely incurred for your business, HMRC will often accept secondary evidence. However, there are strict limits — especially if you are VAT-registered.
What secondary evidence works when a receipt is lost?
If you misplace a receipt or the vendor did not provide one, assemble a corroborating paper trail:
- Bank or Credit Card Statements: Proves the date, transaction amount, and the merchant's trading name.
- Supplier Order Confirmations: Emails showing the order details, delivery address, and itemized descriptions.
- Contemporaneous Diary Entries: Notes written at the time of purchase explaining what was bought and the specific client or project it was used for.
- Photos of the Item: For tools, materials, or equipment, a photo of the item on site establishes that the asset was acquired.
If an HMRC inspector reviews your accounts and sees consistent, credible business entries with clear bank proof, occasional missing receipts for low-value items will usually be accepted.
However, if you have hundreds of pounds in unevidenced cash expenses or broad round-figure estimates, HMRC will disallow the claims and may levy penalties for inaccurate record-keeping.
Use HMRC's simplified expenses to avoid keeping receipts
For certain common business costs, HMRC provides simplified expenses — flat-rate allowances that eliminate the need to collect and calculate every single receipt:
- Business Mileage:
- Cars and vans: 45p per mile for the first 10,000 miles, and 25p per mile thereafter.
- Motorcycles: 24p per mile.
- You only need to keep a journey log (dates, destinations, and business miles), not petrol and repair receipts.
- Working From Home Allowance:
- A flat monthly allowance (£10 to £26 per month depending on hours worked) to cover business utility usage without calculating energy bills.
The critical VAT exception
If your business is VAT registered, VAT rules are far more rigid than income tax rules:
- To reclaim input VAT on purchases over £250, you must possess a full VAT invoice showing the supplier's 9-digit VAT registration number, the date, a description of the goods, and the VAT breakdown.
- For purchases under £250, a "simplified VAT invoice" (such as a petrol receipt or supermarket slip) is acceptable, but it must still display the supplier's VAT number and the applicable tax rate.
If you attempt to reclaim VAT relying solely on a bank statement, HMRC will reject the claim during a VAT inspection because the statement does not prove that VAT was actually charged or that the supplier was VAT registered.
Using Bilbx to scan receipts immediately guarantees that both income tax deductions and VAT recovery are supported by tamper-evident digital records.
Sources
Common questions
Can I claim a business expense on my Self Assessment without a receipt?
Yes, in reasonable circumstances. If a receipt was lost or not issued, HMRC allows you to claim the expense if you have secondary evidence (such as a bank statement and contemporaneous notes) proving the cost was incurred wholly and exclusively for business.
Can I reclaim VAT without a valid VAT receipt?
Generally no. Under Regulation 13 of the VAT Regulations 1995, you must hold a valid VAT invoice to reclaim input VAT. For purchases under £250, a simplified VAT invoice is acceptable, but without proof of the supplier's VAT number and tax charged, HMRC will disallow input VAT claims.
What secondary proof does HMRC accept for lost receipts?
Bank or credit card statements, email order confirmations, delivery notes, supplier correspondence, calendar entries, and contemporaneous logs explaining what was bought and why.
What are simplified expenses?
Simplified expenses are HMRC flat-rate allowances that don't require keeping receipts for actual costs, such as the flat rate per business mile (45p/mile for cars) or flat-rate working from home allowances.
Every figure on this page is checked against the ATO's own guidance and linked in the sources above. Last checked . Thresholds change each financial year, so if you are reading this well after that date, confirm the current figures before you rely on them. Terms.
Keep reading
How long do you need to keep receipts for HMRC?
At least five years after 31 January for Self-Assessment, six for limited companies. What records to keep, digital copies, and when the clock starts.
ReadDoes HMRC accept photos and scanned receipts?
Yes — HMRC explicitly accepts digital copies. Making Tax Digital rules, when you can throw away paper receipts, and what a valid scan must show.
ReadConsumer Rights Act 2015: Do you need a receipt for a refund?
You do not need a till receipt for faulty goods in the UK. What counts as statutory proof of purchase, the 30-day rule, and illegal 'no refund' signs.
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