receipts vs credit card/bank statements

[moneymoney]

does anyone has experience of HMRC demanding receipts for expenses and a bank statement/credit card statement not being deemed sufficient evidence of the expense?

I totally understand that you can't just withdraw cash and "claim" to have spent it on something, but when there is a credit card/bank statement which shows you spent £XXX in retailer YYY on ZZ/ZZ/ZZZZ date, then is that sufficient or could they still want to see an actual receipt?

Accountant has said you should provide receipts, but wondering if anyone has experience of dealing with HMRC on this?

[northernladuk]

The details of the purchase are important to HMRC, not just the fact a transaction took place. They have no idea if it was wholly and exclusively from a statement.

Are you asking about one instance you couldn't get a receipt or are you expecting to do away with receipts and just rely on the statement for everything?

Looking at some guidance they can apply a bit of discretion in odd cases but not as a standard.

[moneymoney]

The details of the purchase are important to HMRC, not just the fact a transaction took place. They have no idea if it was wholly and exclusively from a statement.

understood, but when it's just a business entertainment expense from a bar/coffee/shop restaurant, does it still matter? (I'm talking expenses under <£100) I can understand that if you are claiming to spend over £2K on equipment they would want to know exactly what it was on, but does it really matter if it was a coffee or a sprite?

I have receipts for some, but probably not the majority of small expenses and I'm wondering therefore if I should just leave them out entirely or put them forward as common sense says there can't really anything else the expense was for

[MrMarkyMark]

understood, but when it's just a business entertainment expense from a bar/coffee/shop restaurant, does it still matter?

Details of this "business entertainment expense".
It may be all subjective anyway, as HMRC really don't like those...

[northernladuk]

Coffee?? Sprite?? What am I reading???..... I'm out....

[moneymoney]

Details of this "business entertainment expense".
It may be all subjective anyway, as HMRC really don't like those...

i'm just not sure what difference the receipt makes

if i had a receipt from a pub for 2 pints or a card statement for £10 (London prices!!!) , the receipt doesn't explain or justify the expense, if they want to chase and query it, I don't see how the receipt makes a difference

[MrMarkyMark]

i'm just not sure what difference the receipt makes

if i had a receipt from a pub for 2 pints or a card statement for £10 (London prices!!!) , the receipt doesn't explain or justify the expense, if they want to chase and query it, I don't see how the receipt makes a difference

You don't have to see, HMRC do it all for you.

Don't forget, they are their rules, not for you to make any interpretation that suits.

[moneymoney]

You don't have to see, HMRC do it all for you.

Don't forget, they are their rules, not for you to make any interpretation that suits.

haha fair enough....hoping for logical reasoning from them might be a bit much

I'll check how much i have receipts for, put them in , then make a decision on the remaining

[northernladuk]

i'm just not sure what difference the receipt makes

if i had a receipt from a pub for 2 pints or a card statement for £10 (London prices!!!) , the receipt doesn't explain or justify the expense, if they want to chase and query it, I don't see how the receipt makes a difference

So you've picked one incredibly simple example to try justify the entire expenses system? How on earth does that lead you to any fit conclusion. What about a 700 quid payment to Staples. Half of it could be for personal use, could all be personal. How does HMRC know without a receipt.

There just can't be a system where it's OK for beer bit not fit staples. I bought my office chair from John Lewis. I'm gonna struggle to convince it's wholly and exclusively for business use from JL using just the statement. Gotta think a little about these things sometimes you know.

[ASB]

i'm just not sure what difference the receipt makes

if i had a receipt from a pub for 2 pints or a card statement for £10 (London prices!!!) , the receipt doesn't explain or justify the expense, if they want to chase and query it, I don't see how the receipt makes a difference

The difference the receipt makes it that it shows what it actually is. Curiously that might be at least partially relevant in whether or not it is legitimate.

Granted if it is something like Costa then it probably makes little difference (and HMRC are not that anal generally), but if it's 10 quid in PC World it could be a memory stick, or a game.