If you’ve ever been told “no VAT receipt means no VAT claim”, you might think that’s the end of the story. It’s a simple rule, and many bookkeepers follow it. But the truth is, it’s not quite what HMRC says. Yes, a proper VAT invoice is the gold standard. It’s what HMRC expect, and it’s always my first request when I’m working on your accounts. But HMRC’s own guidance makes it clear that in some cases, they’ll accept other proof — as long as it convincingly shows that VAT was paid to a genuine supplier for business purposes. So if that invoice has gone missing, all may not be lost. What Counts as “Other Proof”? It could be things like: A supplier statement or delivery note Bank or card statements showing the payment Email confirmation from the supplier What HMRC want to see is that: You actually received the goods or services. They were genuinely for your business. VAT was charged and paid. If we can show that clearly, a claim can still go through — especially when there’s no suggestion of fraud. Why This Matters for You A blanket “no invoice, no claim” approach can mean you end up paying more VAT than you should.I prefer to take a more practical, case-by-case view: encouraging you to keep all the right documents, but also using my professional judgement when something’s missing. That doesn’t mean being careless — it means understanding the rules well enough to make them work for you, without crossing any lines. The Bottom Line Losing a VAT invoice doesn’t always have to be a deal-breaker. With the right evidence and a careful approach, you may still be able to claim. It’s about having someone on your side who knows the rules, knows the grey areas, and knows when it’s worth fighting your corner. And that’s exactly how I work for my clients. Quick Checklist: What to Keep for Your VAT Records If you want to make VAT claims as smooth as possible, here’s what to hold on to: VAT invoices from your suppliers (paper or digital copies are fine) Till receipts showing VAT separately or marked “VAT receipt” Supplier statements (especially for regular accounts) Proof of payment — bank statements, card receipts, PayPal records Delivery notes or order confirmations The more complete your records, the easier it is to claim — and the stronger the case if HMRC ever ask questions. Tip: My clients use Dext to snap receipts on their phone or forward invoices straight from their email. Everything lands in one secure place, ready for bookkeeping — no more crumpled paper or missing VAT details.

The Bank of England governor, Andrew Bailey, has warned that the UK jobs market is showing early signs of slowing down. Speaking at a British Chambers of Commerce event, he pointed to two main drivers – higher employer National Insurance contributions (NICs) and rising overall costs. In short, businesses are reacting by scaling back recruitment and holding back on pay rises. For many employers, this isn’t about wanting to cut back – it’s about protecting cashflow in a tougher environment. The Bank’s Monetary Policy Committee will be watching closely when it meets in August to decide on interest rates, currently 4.25%. Bailey hinted he’s already seeing more evidence of companies adjusting staffing and pay since the NIC changes came into force earlier this year. The wider economic picture is mixed. The UK economy grew by 0.7% in the first quarter of 2025, but April saw a 0.3% dip. PAYE data shows more than 100,000 jobs lost in May – the steepest monthly drop since the first COVID lockdown. Wage growth in the private sector is also easing, down to 5.1% in the three months to April from 5.9% earlier this year. Some members of the Bank’s rate-setting committee are already pushing for cuts, with markets expecting rates to be down to around 3.75% by the end of the year. But Bailey’s message was clear – growth remains weak and global uncertainty, including new US trade measures, is adding to the pressure. What this means for business owners Slower job growth and pay restraint can create both challenges and opportunities. If you’re an employer, it’s a good time to: Review your staffing plans for the next 6–12 months. Assess the impact of higher NICs on your budget. Keep an eye on interest rate movements – they can affect borrowing costs, investment decisions, and customer spending power. I help small businesses understand these shifts and make informed decisions so they’re not caught out by sudden changes in the economy. If you’d like to talk through how these changes could affect your business, get in touch.