One of the most common questions accountants hear is:

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

It happens to almost every business owner. A receipt fades, gets misplaced, is accidentally thrown away or simply never existed because the purchase was made years ago.

Many people assume that without a receipt they cannot claim the expense at all.

The reality is more nuanced.

While receipts are the best evidence of business spending, they are not always the only evidence HMRC will consider. What matters is whether you can demonstrate that the expense was genuinely incurred, was for business purposes and has been recorded accurately.

In this guide, we’ll explain when receipts are important, what alternative evidence may be acceptable and how to keep better records moving forward.

The short answer

Receipts are the strongest evidence that a business expense has been incurred, and you should keep them wherever possible.

However, losing a receipt does not automatically mean an expense can never be claimed.

If you can provide sufficient alternative evidence to show that the expense was genuine, wholly and exclusively for business purposes and actually paid, it may still be possible to support the claim.

Each situation depends on the available evidence and the nature of the expense.

Why are receipts important?

Receipts provide evidence of:

• What was purchased.
• When it was purchased.
• Who supplied it.
• The amount paid.
• Any VAT charged.
• The payment method.

This information helps support bookkeeping, VAT claims and tax returns.

Without supporting evidence, it becomes much harder to demonstrate that an expense was genuinely incurred for business purposes.

What if you’ve lost the receipt?

Losing a receipt does not automatically mean you have done something wrong.

Receipts are commonly lost because:

• They fade over time.
• They were paper receipts.
• They were accidentally discarded.
• They were damaged.
• The supplier didn’t issue one.
• The purchase was made online and the confirmation email was deleted.

The important question becomes whether alternative evidence exists.

What other evidence could support an expense?

Depending on the circumstances, useful evidence may include:

• Bank statements.
• Credit card statements.
• Business account transactions.
• Online invoices.
• Email confirmations.
• Supplier statements.
• Order confirmations.
• Contracts.
• Delivery notes.
• Payment confirmations.

The stronger the evidence, the easier it is to support the bookkeeping.

Can bank statements replace receipts?

Not completely.

A bank statement proves that money left your account.

It does not always explain:

• What was purchased.
• Whether it related to the business.
• Whether VAT was charged.
• Whether private items were included.

Bank statements are helpful evidence but are often stronger when supported by other records.

What about online purchases?

Many businesses now buy software, subscriptions and equipment online.

Instead of paper receipts, businesses often retain:

• PDF invoices.
• Confirmation emails.
• Download confirmations.
• Subscription renewals.
• Digital payment confirmations.

These documents are often easier to store than paper receipts.

Can you claim cash purchases?

Cash purchases are often the most difficult to evidence if receipts are missing.

Without a receipt or other supporting records, it can be difficult to demonstrate:

• What was purchased.
• Who it was purchased from.
• Whether it related to the business.

Businesses using cash should be particularly careful to retain documentation.

VAT and missing receipts

VAT recovery generally has stricter documentary requirements.

Even if an expense can be recognised in the accounts, reclaiming VAT without appropriate VAT evidence may not always be possible.

Businesses should therefore make every effort to obtain VAT invoices where required.

Good record keeping

The easiest way to avoid missing receipts is to digitise them immediately.

Many accounting apps allow you to:

• Photograph receipts.
• Upload invoices.
• Match expenses to bank transactions.
• Store digital copies securely.

This reduces the risk of losing paperwork before year-end.

Common mistakes

Some common errors include:

• Waiting until year-end to organise receipts.
• Throwing away faded receipts.
• Claiming personal expenses.
• Relying only on memory.
• Keeping no explanation for unusual purchases.
• Mixing personal and business transactions.

Frequently Asked Questions

Can I claim an expense with no receipt?

Possibly, if there is sufficient alternative evidence that the expense was genuinely incurred for business purposes.

Can HMRC reject expenses?

Yes. If there is insufficient evidence to support a claim, HMRC may challenge it.

Is a bank statement enough?

Sometimes it helps, but it may not provide enough detail on its own.

Should I keep digital copies?

Yes. Digital records are generally much easier to organise and retain than paper receipts.

How long should I keep receipts?

Business records should be retained for the relevant statutory record-keeping period.

Final thoughts

Receipts remain the best evidence of business spending, but losing one does not necessarily mean the expense can never be recognised.

The key is maintaining accurate bookkeeping and retaining as much supporting information as possible.

Good record keeping throughout the year makes tax returns easier, reduces the likelihood of HMRC queries and helps ensure legitimate business expenses are not missed.

At Merranti Accounting, we help businesses implement simple bookkeeping systems that make storing receipts, tracking expenses and preparing year-end accounts far less stressful. If you’re unsure whether an expense can be claimed or need help improving your record keeping, our team is here to help.

Written by Steve Watts