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Receipts for LTD
HappyUser
Posts: 301 Forumite
in Cutting tax
Hello,
My accountant told me that I have to ask for PAPER receipts and keep them for EVERYTHING I buy and claim as business expenses, i.e. the coffee I buy at work everyday for £1.50.
Is this serious? Cannot they simply accept my bank statements that list my purchases?
It's extremely inconvenient and waste of material when we live in 2019!
My accountant told me that I have to ask for PAPER receipts and keep them for EVERYTHING I buy and claim as business expenses, i.e. the coffee I buy at work everyday for £1.50.
Is this serious? Cannot they simply accept my bank statements that list my purchases?
It's extremely inconvenient and waste of material when we live in 2019!
0
Comments
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You need proof of purchase. This doesn’t need to be a receipt per se. A bank statement might be acceptable if it’s obvious what it is (and can be corroborated with e.g. an online order confirmation email).
For out of pocket expenses like travel and subsistence that you reclaim from YourCo you do need some kind of proof of expenditure and a simple receipt is obviously the simplest solution. It might be enough to say that a purchase shown on a bank statement made in Costa Coffee whilst travelling on business or working from a temporaru workplace is good enough but for the sake of avoiding an issues just ask for a receipt.
Two things:
1. If you are VAT registered and want to reclaim VAT on a purchase you do need a valid VAT invoice or receipt.
2. You are not required to keep paper copies of your receipts. It’s perfectly acceptable to scan them and keep digital copies. There are plenty of smart phone apps that do a decent job of this.0 -
Hello,
My accountant told me that I have to ask for PAPER receipts and keep them for EVERYTHING I buy and claim as business expenses, i.e. the coffee I buy at work everyday for £1.50.
Is this serious? Cannot they simply accept my bank statements that list my purchases?
It's extremely inconvenient and waste of material when we live in 2019!
£1.50 for a coffee?
I am surprised you are willing to pay such extortionate rip off prices when you could make a flask at home and take it into work.0 -
as a company "you" ARE REQUIRED to retain evidence of what it purchased, not solely what it spent. Legally you must retain evidence of your purchases for 6 years after the end of the accounting period to which they relateHello,
My accountant told me that I have to ask for PAPER receipts and keep them for EVERYTHING I buy and claim as business expenses, i.e. the coffee I buy at work everyday for £1.50.
Is this serious? Cannot they simply accept my bank statements that list my purchases?
It's extremely inconvenient and waste of material when we live in 2019!
a bank statement shows only what was spent with whom, not what you bought. Without receipts there is no proof the expenditure was on a business related item - your £1.50 could just as easily have been something purchased at night at home
you are correct that you do not need to physically hold paper receipts, but you sure as 'eck need at least a softcopy of each and every receipt - hence there are a plethora of "apps" that allow you to take pictures of receipts and upload to accounting software if you really cannot be doing with keeping paper.
for the record, that will not be acceptable if HMRC come calling because it fails to show what was purchased. order confirmations are not proof of purchase, orders can be cancelled or fail to be delivered and as you have correctly noted, do not meet VAT requirements.TheCyclingProgrammer wrote: »A bank statement might be acceptable if it’s obvious what it is (and can be corroborated with e.g. an online order confirmation email).
£10 paid at Sainburys per the bank statement could be (modest) family shopping not a business subsistence claim and £30 might be fuel for a car which the company does not own....0 -
What's the worse keeping receipts will do? Either that or panic when you have a HMRC investigation and you have nothing tangible to show.
Get a cheap folder with all 12 months labelled and put it in or scan and make a folder in your desktop. Simples.
Even do a spreadsheet on excel detailing expenses and when and income e.t.c"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
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Hello,
My accountant told me that I have to ask for PAPER receipts and keep them for EVERYTHING I buy and claim as business expenses, i.e. the coffee I buy at work everyday for £1.50.
Is this serious? Cannot they simply accept my bank statements that list my purchases?
It's extremely inconvenient and waste of material when we live in 2019!
Sounds like you need to get a new accountant ... for so many reasons
:xmastree::xmastree::xmastree::xmassign:
Who do you bank with that details all your purchases? :huh:0 -
Some accountants I know do allow sustenance of about £ 5 a day without receipts i am aware of, not sure if that is legally allowed though"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
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Some accountants I know do allow sustenance of about £ 5 a day without receipts i am aware of, not sure if that is legally allowed though
Probably referring to this;
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim05231
but it's not as simple as just saying, don't bother with receipts if below £5. You need to apply for dispensation, and then have to prove the spend is in accordance with subsistence tax rules by regularly sampling.0 -
...You need to apply for dispensation, and then have to prove the spend is in accordance with subsistence tax rules by regularly sampling.
Not for tax years 2016 to 2017 onwards
From 6 April 2016 businesses are no longer able to apply for a dispensation and all existing dispensations have come to an end.
The employer only now needs to have a checking process in place and be able to demonstrate that they satisfy the travel and subsistence rules at Section 337 ITEPA 2003 and Section 338 ITEPA 2003.
:xmastree::xmastree::xmastree::xmassign:0
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