11/10/2026
Do you really need every receipt, or is it OK to just code everything from your bank statement?
With MTD becoming a reality, I've had lots of conversations recently about receipts. So why do we need receipts, and does it really matter if you are missing a few?
For spend to be tax-deductible, it needs to be wholly and exclusively for the purpose of your business. Receipts show what you actually bought and give us more information than your bank statement alone.
MTD Software only sends over category totals to HMRC. The receipts and the line items stay in the software, so do you actually need to scan them in? My answer will always be yes and here's why. Should you get an HMRC inspection, the inspector can ask to see receipts for any and all of your transactions. Receipts fade over time. Filing systems fail. Small receipts get lost. If you scan your receipts as soon as you get them, they are safely stored in your accounting system, attached to the relevant transaction, and available at the click of a button.
So what about those times you just can't get a receipt, or one goes missing? I know... it happens! It depends what you are buying really. For example, if you buy a cup of tea on a train, it's fairly clear from the time of the purchase and the amount that it relates to your train travel. A few pounds spent with the local council is most likely parking. Add some notes when you post the transaction to give context.
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Wild Bookkeeping Ltd is the outsourced finance department for ambitious business owners ready to scale. We help you navigate the highs and lows of business with the systems, rigour, and guidance to stay in control and compliant, so growth feels like an adventure, not a gamble.
