What receipt do you need for HMRC?

katy123

We’ve just incorporated our company and we took a client out for lunch. When we got the itemised bill, we paid via cash and left with the itemised bill. Is this bill sufficient for HMRC purposes as expense? Only asking because we would normally pay via card and you get both the itemised bill and a card receipt. Many thanks.

Pennywise

Yes, any proof of purchase is fine, but taking a client for lunch isn't a tax-allowable expense, you won't get corporation tax relief on it.

katy123

Pennywise wrote: »

Yes, any proof of purchase is fine, but taking a client for lunch isn't a tax-allowable expense, you won't get corporation tax relief on it.

Thanks Pennywise, I agree. It’s still worth paying from the company though, as it saves you the income tax you would otherwise pay on withdrawing the funds to pay the costs personally.

THinking about it more, does paying in cash still work then? As it didn't come via the company bank account? can i treat it as a directors loan (company owes me money)?

00ec25

katy123 wrote: »

THinking about it more, does paying in cash still work then? As it didn't come via the company bank account? can i treat it as a directors loan (company owes me money)?

the cash came from somewhere, if that is not directly attributable to a company petty cash float then the only other place it came from is the DLA