Not necessarily. The common misconception is that VAT can’t be recovered without the original paper receipt. Companies do not have to retain all their hard-copy receipts for expenses. You can claim VAT back using digital copies.
The good news is that it is possible to collect receipts digitally and retain these electronic images of the originals instead. The catch is, they must be are clearly legible, easily accessible, printable and not manipulated or editable.
You do not have to have an invoice to claim a tax deductible expense. So long as you can prove to the tax man, if required, you simply have to demonstrate that you incurred the cost. So if you pay for a business trip and loose the receipt, so long as you can show that your employee attended the event then you can prove that a cost was incurred. You then have to demonstrate that the cost incurred for the event is fair.....unless you have a receipt to prove the actual cost.
Paul Clifton of All Paul Accountants,
Helping smaller businesses and their owners manage their accounting, business and taxation
Contact me on email@example.com or on 0113 225 2232.