Self employed receipts

katy123

Hi

I'm self employed and have expenses receipts, do I need the itemised receipt or is the card receipt sufficient for HMRC purposes? I sometimes only get given the card receipt so no breakdown.

Aquamania

katy123 wrote: »

Hi

I'm self employed and have expenses receipts, do I need the itemised receipt or is the card receipt sufficient for HMRC purposes? I sometimes only get given the card receipt so no breakdown.

You generally need an itemised receipt, as a card receipt does not usually detail what has been purchased.

If you are VAT registered, you need to have a fully compliant VAT receipt.

Whilst occassionally receipts are dual purpose, if you are only given a card receipt, you can always ask for an itemised receipt (fully VAT compliant if the seller is VAT registered)

Note that you do not normally need to submit any receipt to HMRC; they only need to be available if you are specifically asked to prove a submission (e.g. for a spot check, because you are being investigated, etc)
Of course, once they uncover one irregularity, they start digging a lot more - not something you really want to endure.

katy123

Aquamania wrote: »

You generally need an itemised receipt, as a card receipt does not usually detail what has been purchased.

If you are VAT registered, you need to have a fully compliant VAT receipt.

Whilst occassionally receipts are dual purpose, if you are only given a card receipt, you can always ask for an itemised receipt (fully VAT compliant if the seller is VAT registered)

Note that you do not normally need to submit any receipt to HMRC; they only need to be available if you are specifically asked to prove a submission (e.g. for a spot check, because you are being investigated, etc)
Of course, once they uncover one irregularity, they start digging a lot more - not something you really want to endure.

Thanks, I am not VAT registered and will unlikely to be ever VAT registered. So, will card receipt be suffice or will an itemised be best.

Savvy_Sue

Itemised would be best. For example, I often go to CostCo and buy things for work and for home. My manager is not the least bit interested in the CC receipt, because as she quite rightly says all that proves is that I spent money there. The itemised receipt establishes that the things I bought for work are legitimate expenses. Although I'm employed and you're self-employed, the principle for tax investigation is the same.

00ec25

katy123 wrote: »

Thanks, I am not VAT registered and will unlikely to be ever VAT registered. So, will card receipt be suffice or will an itemised be best.

as explained above, the card receipt confirms only the amount paid, it does not state what you purchased therefore is of no use in proving that the £50 you spent was not in fact a gift for the wife but was in fact a purchase for the business. I assume you can see the difference?