While there isn't a strict limit on expenses you can claim without receipts in the UK, HMRC (Her Majesty's Revenue and Customs) advises that any claims must be reasonable and supported by evidence. Here's what to keep in mind:
Small Expenses: For minor, occasional expenses under £10, you might be able to justify a claim without a receipt. However, detailed records (purpose, date, amount) are crucial.
VAT Registered Businesses: If you're VAT registered, you generally need valid VAT receipts for expenses over £25 to reclaim VAT.
HMRC Scrutiny: Claiming numerous expenses without receipts raises the risk of an HMRC investigation. Meticulous record-keeping is your best protection.
Simplified Expenses: Consider using HMRC's flat rate simplified expenses if you find tracking receipts burdensome. This offers fixed deductions based on your business type.
Accountants Chester can offer invaluable guidance:
Tailored Advice: They can assess your specific business circumstances and advise on the best approach for expense claims.
Record-keeping Best Practices: Accountants help establish robust systems to track expenses, minimising hassle and maximising allowable deductions.
Peace of Mind: Their expertise ensures compliance with HMRC regulations, avoiding potential penalties and stress.
Pre-Trade Expenses Accountants Chester