Ed Balls... says keep your receipts!

So once again Ed Balls puts his foot in it for suggesting that we should all demand and keep receipts from window cleaners and other odd jobbers.
For private individuals this is probably not a major concern but for business owners you really need to do this to support your business expenses and it’s a good habit to get into.
The Tax man is not very keen to allow expenses which are not backed up by receipts, however, if it’s not practical to get one or you inadvertently lose it in your 'white van' or washing machine make sure you at least keep a record of it by noting it down in your books and records.
However, for VAT purposes you will need a 'proper' receipt with a VAT number in order to reclaim the VAT. Less detailed receipts are fine for items which cost less than £250.

The following are not VAT invoices and won't be accepted

  • pro forma invoices
  • 'this is not a tax invoice' invoices (the favourite for mobile phone companies!)
  • statements
  • delivery notes
  • orders