July 29, 2026
By Merranti

What Expenses Can You Claim Without a Receipt?

One of the most common questions accountants hear is:

“Can I still claim a business expense if I have lost the receipt?”

It happens to almost every business owner.

A paper receipt fades, gets misplaced, is accidentally discarded or never reaches the person responsible for the bookkeeping. An online invoice may be sent to an old email address, while a cash purchase may have been made without collecting any paperwork.

Many people assume that an expense must automatically be removed from the accounts if the original receipt cannot be found.

The position is more nuanced.

A receipt or invoice is normally the strongest evidence of a business expense, and businesses should obtain and retain one wherever possible. However, losing the receipt does not necessarily mean the expense can never be recognised.

The key questions are whether you can demonstrate:

What was purchased
How much was paid
When it was purchased
Who supplied it
Why it related to the business
Whether any private element exists
Whether VAT was actually charged

The strength of the available evidence and the nature of the expense will determine whether the claim can be supported.

The short answer

There is no special category of business expenses that can always be claimed without receipts.

However, a missing receipt does not automatically prevent a claim where reliable alternative evidence demonstrates that the expense:

Was genuinely incurred
Was paid by the business or on its behalf
Related to its trade
Has been recorded accurately
Does not include an unadjusted personal element

Alternative evidence may include:

Bank statements
Credit-card statements
Supplier statements
Duplicate invoices
Email confirmations
Online order histories
Contracts
Delivery notes
Payment confirmations
Expense forms
Mileage records
Correspondence with the supplier

The position is stricter for VAT.

A bank transaction may support the underlying business expense, but it will not necessarily prove that VAT was charged or that the business is entitled to reclaim it.

Why are receipts and invoices important?

Receipts and invoices provide information needed to support the accounting and tax treatment of a purchase.

A suitable document may show:

The supplier
The purchase date
The goods or services supplied
The amount paid
The customer
The VAT charged
The payment method
Any personal items included

These details allow the business to determine whether the cost is:

Revenue or capital expenditure
Wholly business-related
Partly personal
Subject to VAT
Connected with a specific employee
An allowable tax deduction
A potentially taxable Benefit in Kind

A bank statement showing a payment of £120 to a retailer proves that money left the account.

It does not necessarily show whether the payment related to:

Office equipment
Personal clothing
Client entertainment
Groceries
Several mixed purchases
An item containing recoverable VAT

That is why the receipt, invoice or equivalent supporting document remains important.

Does HMRC require every original paper receipt?

HMRC requires businesses to maintain sufficient records to support their income, expenses, accounts and tax returns.

Those records do not always need to be original paper documents.

Businesses can generally retain:

Paper receipts
Scanned copies
Photographs
PDF invoices
Digital receipts
Electronic supplier records
Accounting-software attachments

The important point is that the record remains:

Complete
Accurate
Readable
Accessible
Connected to the relevant transaction

A clear photograph of a receipt uploaded into bookkeeping software may be more useful than a faded original kept in a carrier bag for several years.

Merranti’s guide to the records businesses need to keep for HMRC explains the wider documentation required to support company and sole-trader accounts.

What should you do when a receipt is missing?

The first step should be to try to obtain a replacement.

Depending on the purchase, you may be able to:

Download the invoice from the supplier’s website
Check the retailer’s application
Search your email account
Review the online order history
Ask the supplier for a duplicate
Request a copy from the employee who made the purchase
Retrieve the invoice from the payment platform
Check the company’s accounting software
Review an existing supplier statement

Many suppliers can recreate invoices where you provide:

The purchase date
The amount
The payment-card details
An order number
The customer name
The delivery address

A missing receipt should not immediately be replaced with an estimate if a reliable copy can reasonably be obtained.

What alternative evidence may support an expense?

Where the original receipt cannot be recovered, the business should assemble the strongest available evidence.

Bank or credit-card statement

This can establish:

The payment date
The amount
The recipient
The account used

It may not explain what was purchased or whether the transaction included private expenditure.

Supplier statement

A supplier statement may show:

Invoice numbers
Invoice dates
Amounts charged
Payments received
The customer account

It is often useful when individual invoices are missing.

Email or order confirmation

This may identify:

The product or service
The supplier
The purchase date
The price
The delivery address
The customer

Contract or subscription agreement

A contract may support recurring costs such as:

Software subscriptions
Insurance
Telephone services
Professional memberships
Equipment rental
Premises costs

Delivery note

A delivery note may show that goods were received, although it may not contain the complete price or VAT information.

Internal expense record

An internal record may explain:

Who made the purchase
Why it was required
Which customer or project it related to
Why the receipt is unavailable
How the amount was calculated

An internal note is stronger when supported by independent evidence rather than being the only record.

Is a bank statement enough?

Sometimes, but not always.

A bank statement may be sufficient to support a clear and recurring business payment where the business purpose is readily identifiable.

Examples might include:

Bank charges
Loan interest
Direct Debits to a known software provider
Insurance premiums
Business rates
Payments to an established supplier
Regular professional subscriptions

However, a bank statement may not be enough where:

The supplier sells business and personal items
The payment includes several purchases
Cash was withdrawn
The business purpose is unclear
The amount appears unusual
VAT is being reclaimed
The expense has a private element
The transaction was paid from a personal account

The evidence should be considered as a whole.

For example, a bank transaction, supplier email and delivery record together may provide a much stronger audit trail than the bank statement alone.

Can you claim online purchases without a paper receipt?

Yes, provided suitable digital records exist.

A paper receipt is not required where the business has an electronic invoice or equivalent evidence.

Useful records may include:

PDF invoices
Email receipts
Online order confirmations
Download histories
Subscription renewal notices
Digital payment records
Supplier account statements
App-store purchase histories

The document should ideally identify what was purchased rather than merely confirming that payment was made.

Businesses should download invoices regularly rather than assuming they will remain available indefinitely in an online account.

Can you claim cash purchases without a receipt?

Cash purchases are more difficult to support when no receipt exists.

A cash withdrawal only proves that money was taken from the bank. It does not prove:

That the money was spent
What was purchased
Who received it
Whether it was business-related
Whether change was returned
Whether VAT was charged

Where a small cash expense is genuine but the receipt is unavailable, the business should create a contemporaneous record containing:

The date
The amount
The supplier
The item purchased
The business reason
The person who made the purchase
Why no receipt is available

Any supporting evidence should be attached.

However, handwritten internal notes should not become a routine substitute for collecting receipts.

Repeated unsupported cash claims are more likely to be questioned by HMRC.

What about mileage claims?

A mileage claim does not normally require a fuel receipt for every journey where the business is claiming an approved mileage rate rather than the actual vehicle costs.

The supporting evidence is usually a mileage log showing:

The journey date
The starting point
The destination
The business purpose
The number of business miles
The vehicle used
The rate claimed

The business should be able to demonstrate that the journey took place and was genuinely business-related.

Fuel receipts may still be relevant where:

The business claims actual vehicle costs
VAT is reclaimed on mileage
Fuel was purchased by the company
A company car is involved
The business uses a fuel scale charge

A mileage claim should not simply consist of a round monthly estimate.

What about homeworking expenses?

Some homeworking claims can be based on an approved flat rate or an employer reimbursement rather than receipts for every individual household cost.

The business should still retain evidence supporting:

The homeworking arrangement
The periods worked from home
The amount paid
The calculation method
Any higher actual-cost claim

The use of a flat-rate amount does not mean that no records are required at all.

It means that the business may not need to calculate and evidence every small increase in heating, lighting and other household expenditure separately.

Can recurring Direct Debits be claimed without monthly invoices?

Recurring bank payments may help support an expense, but the business should still retain the underlying contract or periodic invoices where available.

This applies to costs such as:

Software
Insurance
Telephone contracts
Internet services
Equipment leases
Professional subscriptions
Finance agreements
Website hosting

The initial contract may explain the service, while the bank statement demonstrates that the payment was made.

If the price changes, the business should retain the renewal notice or updated invoice.

Can an expense be claimed if it was paid personally?

Potentially.

A director, employee or sole trader may sometimes pay a business expense from a personal account.

The business should retain evidence showing:

What was purchased
Why it was for the business
Who paid it
Whether reimbursement occurred
How it was recorded

For a limited company, the payment may be:

Reimbursed to the director or employee
Credited to the director’s loan account
Recorded as an amount owed by the company

The expense should not be treated as automatically personal simply because the wrong card was used.

However, paying company costs personally can weaken the audit trail and create additional bookkeeping work. Regular business expenditure should normally be paid from a dedicated business account.

Can you estimate an expense?

Estimates should be used cautiously.

HMRC may permit estimated or provisional figures where records have genuinely been lost, stolen or destroyed and cannot reasonably be recreated.

A figure should not be estimated merely because:

The business did not keep records
Calculating the amount would take time
The owner cannot remember the purchase
The bank statement is unclear
A round figure appears reasonable

Where an estimate is necessary, the business should document:

Why the original evidence is unavailable
What attempts were made to recover it
How the figure was calculated
What assumptions were used
Whether the figure is provisional or final

A provisional figure is expected to be replaced when the correct information becomes available.

An estimate should have a rational basis rather than being a guess.

What is the position for VAT?

VAT recovery has stricter documentary requirements than the deduction of an expense for Income Tax or Corporation Tax.

A VAT-registered business will normally need a valid VAT invoice or another approved document to support an input-tax claim.

A bank statement alone generally does not show:

That the supplier was VAT registered
That VAT was charged
The VAT amount
The supply received
The customer named on the invoice

If a VAT invoice is missing, the business should first ask the supplier for a replacement.

HMRC has discretion to consider alternative evidence where the correct VAT document cannot be obtained. However, this is not intended to replace the normal requirement to hold VAT invoices.

Alternative evidence may need to demonstrate:

A genuine taxable supply took place
The goods or services were received
VAT was charged
The claimant paid the amount
The supply was made to the business
The purchase related to taxable business activity
Attempts were made to obtain an invoice

HMRC may reject the VAT claim where the evidence is inadequate.

The fact that the underlying cost is included in the accounts does not automatically mean that the VAT can also be reclaimed.

Merranti’s VAT service can help businesses review unsupported input-tax claims before a VAT return is submitted.

What about purchases below £250?

For VAT purposes, a supplier may issue a less-detailed VAT invoice for a qualifying supply with a VAT-inclusive value of £250 or less.

A less-detailed invoice still needs to contain prescribed information.

A card slip by itself is not necessarily a VAT invoice.

The business should check that the document contains details such as:

The supplier’s name
The supplier’s address
The supplier’s VAT number
The supply date
A description of the goods or services
The total amount including VAT
The applicable VAT rate

Where the necessary details are missing, the business should obtain an appropriate invoice before reclaiming VAT.

Can HMRC reject an expense?

Yes.

HMRC may disallow an expense where the business cannot demonstrate:

That the purchase occurred
That the amount is accurate
That the payment was made
That it related to the trade
That any private element was removed
That the cost was incurred by the correct taxpayer

This can result in:

Additional Income Tax
Additional Corporation Tax
Additional VAT
Interest
Penalties
A wider review of the records

An unsupported expense is more likely to be challenged where it is:

Large
Unusual
Paid in cash
Connected to the owner
Recorded as miscellaneous
Partly personal
Inconsistent with the business
Repeated frequently

The risk is not determined solely by the amount. A pattern of poor record-keeping can undermine the credibility of the wider accounts.

What happens during an HMRC check?

If HMRC reviews an expense, it may ask for:

The receipt or invoice
Proof of payment
An explanation of the purchase
The supplier’s details
Evidence of business use
The accounting entry
The VAT treatment
Evidence of any apportionment
Correspondence relating to the purchase

Where the original receipt is unavailable, provide the alternative evidence in an organised way.

For example, a response might include:

The bank transaction
A duplicate supplier statement
The order confirmation
The delivery record
An explanation of the business purpose
Evidence showing how the item was used

A clear evidence package is more persuasive than a general statement that the owner remembers making the purchase.

Expenses that often need particularly strong evidence

Some expenses are more likely to contain a personal element or attract HMRC questions.

These include:

Travel and subsistence
Motor expenses
Homeworking costs
Clothing
Entertainment
Gifts
Cash purchases
Equipment used at home
Payments to family members
Director expenses
Overseas expenditure
Large miscellaneous costs

The absence of a receipt does not make these costs automatically disallowable, but the business should expect to provide a clear explanation and supporting evidence.

Merranti’s guide to what counts as a business expense explains how HMRC distinguishes business costs from private expenditure.

How long should records be kept?

The retention period depends on the business structure and the taxes involved.

Limited companies

Company accounting records must generally be kept for six years from the end of the financial year to which they relate.

Records may need to be retained longer where:

A transaction covers more than one accounting period
An asset is expected to last longer than six years
The Company Tax Return was filed late
HMRC has opened a compliance check

Sole traders and partnerships

Business records must generally be retained for at least five years after the 31 January filing deadline for the relevant tax year.

Longer periods may apply where:

The return was filed very late
HMRC has opened an enquiry
Records relate to assets still owned
Another tax or legal requirement applies

VAT records

VAT records will generally need to be retained for six years, although specific records and schemes can have different requirements.

Where one document supports several taxes, retain it for the longest applicable period.

How should digital receipts be stored?

A useful digital record should be:

Clear
Complete
Secure
Searchable
Linked to the transaction
Backed up
Available for the full retention period

A practical process may be:

Photograph or download the receipt immediately
Upload it to the bookkeeping system
Match it to the bank transaction
Add the business purpose
Record any private proportion
Check the VAT details
Retain the original where necessary
Back up the accounting records

File names should be descriptive where the software does not organise documents automatically.

For example:

2026-07-15 Office Chair Supplier £240

is more useful than:

IMG_8473

Good bookkeeping reduces missing-receipt problems

Missing receipts often become a serious issue because the bookkeeping is completed months after the transaction.

By that point:

Paper has faded
Emails have been deleted
Employees have left
Supplier accounts have closed
The purpose has been forgotten
Personal and business purchases are difficult to separate

Regular bookkeeping allows missing evidence to be identified while the transaction is still recent.

A monthly process should include:

Reconciling bank accounts
Matching receipts
Chasing missing invoices
Reviewing cash purchases
Checking employee expenses
Separating personal items
Reviewing VAT evidence
Clearing unexplained transactions

Merranti’s bookkeeping service helps businesses maintain organised records and resolve missing documentation before accounts or VAT returns are due.

Common mistakes

Assuming a bank payment proves everything

The statement may prove payment but not the nature or business purpose of the purchase.

Reclaiming VAT without a VAT invoice

A normal receipt, card slip or bank entry may not contain the information required to support a VAT claim.

Creating receipts after the event

An internal note can explain a genuine transaction, but it should not be presented as if it were an original supplier document.

Using estimates routinely

Estimates are not a replacement for maintaining proper business records.

Claiming mixed personal purchases in full

Where a transaction includes private items, the personal element should be identified and removed.

Recording unsupported items as miscellaneous

A miscellaneous heading does not remove the need to explain the expense.

Ignoring small cash purchases

Many small unsupported claims can become a material amount over the year.

Waiting until year-end

Missing evidence is usually easier to recover within days of the purchase than several months later.

Keeping receipts without recording the business purpose

A receipt may identify what was purchased without explaining why it related to the business.

A practical missing-receipt checklist

When evidence is missing:

Search emails and supplier accounts
Request a duplicate invoice
Check the bank or card statement
Obtain a supplier statement
Find order and delivery records
Document the business purpose
Identify any private element
Check whether VAT can be reclaimed
Explain why the receipt is missing
Attach all evidence to the transaction
Ask your accountant if the claim is uncertain
Improve the process for future purchases

The decision should be based on the complete evidence rather than a single missing document.

Frequently asked questions

Can I claim an expense with no receipt?

Potentially.

You need sufficient evidence to show that the cost was genuinely incurred for business purposes and recorded accurately.

Is a bank statement enough?

Sometimes, but it may not identify what was purchased, why it was required or whether VAT was charged.

Can I reclaim VAT without a receipt?

Usually, the business should hold a valid VAT invoice or approved alternative document.

HMRC may consider alternative evidence in exceptional circumstances, but the business should first attempt to obtain a replacement invoice.

Can I claim a cash expense without a receipt?

Potentially, but cash purchases are difficult to prove.

Create a detailed record and retain any independent supporting evidence.

Can I use a photograph of a receipt?

Yes, provided the image is complete, readable and retained securely.

What if the receipt has faded?

Photograph or scan thermal-paper receipts soon after purchase.

If it has already faded, ask the supplier for a duplicate and retain the payment evidence.

Can I use a card-machine slip?

A card slip supports the payment but may not show what was purchased or contain the information required for VAT.

Can I claim business mileage without fuel receipts?

A mileage-rate claim is generally supported by a detailed journey log rather than fuel receipts for every journey.

Different requirements apply where actual vehicle costs or VAT on mileage are claimed.

What if I paid using my personal bank account?

The expense may still be claimable if it was genuinely for the business and is recorded correctly.

Keep the purchase evidence and document any reimbursement or director’s loan account entry.

How long should I keep receipts?

Limited companies should generally retain accounting records for six years.

Sole traders and partnerships normally retain business records for at least five years after the relevant Self Assessment filing deadline.

Final thoughts

Receipts remain the clearest and strongest evidence of business expenditure.

However, losing a receipt does not necessarily mean that a genuine business expense must automatically be excluded.

The key is whether the available records demonstrate:

What was purchased
What it cost
Who supplied it
When it was purchased
Why it was business-related
How it was paid
Whether VAT was charged
Whether any private use was removed

The underlying business expense and the VAT claim should be considered separately.

An expense may be supportable for Income Tax or Corporation Tax purposes while the VAT remains unrecoverable because suitable VAT evidence is unavailable.

The most effective approach is to:

Obtain receipts wherever possible
Digitise them immediately
Match them to transactions
Record the business purpose
Request replacements promptly
Avoid routine unsupported cash claims
Review missing evidence monthly

Merranti Accounting can help businesses:

Review unsupported expense claims
Assess alternative evidence
Check whether VAT can be reclaimed
Reconstruct incomplete records
Separate business and private expenditure
Improve receipt-capture processes
Maintain accurate bookkeeping
Prepare accounts and tax returns

Written by Steve Watts

Steve Watts is the Accounting Director at Merranti Accounting and a Chartered Management Accountant with the Chartered Institute of Management Accountants. He also holds a CIMA Member in Practice Certificate.

Steve qualified as a CIMA accountant in 1995 and has more than 20 years of commercial finance and accounting experience.

His career includes work with a major housebuilding plc, the serviced-apartment sector, a large fund-owned property investment portfolio and property development. He has also worked with joint ventures, offshore companies, trusts and complex owner-managed business structures.

At Merranti Accounting, Steve supports company directors and business owners with:

Annual accounts
Corporation Tax
Management accounts
Bookkeeping
VAT
Payroll
Financial strategy
Business planning

Steve’s practical approach focuses on ensuring that accounting records reflect genuine commercial activity and can withstand scrutiny.

Where a receipt is missing, this means looking beyond whether a payment appears on the bank statement. The available evidence should demonstrate what was purchased, why it was required, whether the amount is accurate and whether the correct tax and VAT treatment has been applied.

Steve also helps businesses strengthen their bookkeeping processes so that missing documents are identified quickly rather than discovered at the end of the financial year.

This article provides general information and should not be treated as personalised accounting, tax or VAT advice. Whether a particular expense or VAT claim can be accepted will depend on the available evidence and the circumstances of the transaction.