Faded till receipts: does HMRC accept digital copies?

Why thermal till receipts fade, what HMRC says about scanned and photographed copies, what a usable copy must show, and what to do when a receipt is already blank.

By Ben Warner 5 min read

Most till receipts are printed on thermal paper. There is no ink: the paper darkens where it is heated. That is cheap and fast for shops, but the image fades with heat, light, friction and time. Leave a fuel receipt on a dashboard in summer, or fold one into a wallet for a few months, and you can end up with a blank strip of paper.

That matters because a receipt is your evidence for an expense. If HMRC ever asks you to support a claim, a faded slip proves very little. The good news is that you do not have to rely on the paper.

What HMRC says about copies

There are two pieces of HMRC guidance worth knowing.

For VAT, HMRC's record keeping for VAT notice (VAT Notice 700/21) describes a business whose software scans the invoices it receives. It says that if the image is retained and contains all the detail required for VAT purposes, the business does not need to keep the original invoice, unless it is needed for another purpose. The same notice draws a contrast: if you only type selected figures from an invoice into software, that data is not a copy of the invoice, so you must still keep the original.

For Making Tax Digital for Income Tax, HMRC's digital records guidance says you must keep original records or supporting documents, or copies of them, that you used to prepare your tax return, such as bank statements and invoices.

The theme is the same in both. A copy is acceptable when it is a genuine, complete image of the document. A typed note of the total is not a substitute.

A few documents must be kept in their original form. The VAT notice gives the import VAT certificate (C79) as an example. Ordinary till receipts and supplier invoices are not in that category.

What makes a copy usable

A photo is only as good as what it shows. Before you rely on an image, check that you can read:

  • the supplier's name, and the address if it is printed
  • the date of the purchase
  • what was bought, even if only a short description
  • the total paid
  • if you are VAT registered and reclaiming VAT: the supplier's VAT number, the VAT rate and the VAT amount, or the other details a simplified VAT invoice needs

Tips for a good capture:

  1. Photograph it the same day. Fading starts straight away. A clear photo taken at the till is far better than a careful scan of a faded slip a month later.
  2. Flatten it and fill the frame. Long receipts may need two photos. Make sure the top (supplier and VAT number) and the bottom (total and date) are both included.
  3. Use even light and avoid glare. Thermal paper is shiny, so tilt the receipt slightly if the flash bounces back.
  4. Check it straight away. Zoom in and check the numbers can be read before you bin the paper.

Receipts Keeper is built around that routine. You photograph the receipt, it reads the supplier, date, total and VAT, and the image stays attached to the record. If a figure has been misread you can edit it there and then, while the paper is still in your hand.

Should you still keep the paper?

For VAT purposes, HMRC's position above means a complete retained image can stand in for the original. Many people still keep paper receipts in a monthly envelope as a belt-and-braces backup, and there is no harm in that, but a fading original is a weak backup. The image will be more useful in three years' time than the slip.

If a receipt matters for something other than tax, such as a warranty, a return or an insurance claim, check what that retailer or insurer accepts.

Stopping receipts fading

If you do keep paper:

  • keep receipts out of sunlight and away from heat: not on the dashboard, not near a radiator
  • do not laminate them, because the heat can blacken thermal paper
  • avoid plastic wallets and sleeves, which can react with the coating over time
  • do not fold or rub them; friction marks thermal paper too
  • ask for an emailed receipt where the shop offers one

The receipt has already faded. What now?

Do not panic. Try, in this order:

  1. Ask the supplier for a copy. Many retailers can reprint a receipt or email a VAT invoice from the transaction date, the card used and the store.
  2. Check your inbox and online accounts. Fuel cards, trade merchants, online retailers and many supermarkets keep purchase histories.
  3. Use your bank or card statement. A statement line shows the date, the payee and the amount. It does not show what you bought, so add a note explaining the purchase while you still remember it.
  4. Estimate if you must, and say so. HMRC's guidance on business records says that if your records are lost, stolen or destroyed and you cannot replace them, you must do your best to provide figures, and tell HMRC when you file if you are using estimated or provisional figures.

For VAT the bar is higher. To reclaim input VAT you normally need a valid VAT invoice. HMRC's VAT guide (VAT Notice 700) says it may use its discretion to accept alternative evidence, but only where it is satisfied the supply took place and you took reasonable steps to get a VAT invoice. A bank statement line on its own is unlikely to be enough, so ask the supplier for a replacement VAT invoice first, and talk to your accountant if you cannot get one.

Build the habit

Faded receipts are a symptom of leaving receipts on paper too long. The fix is a habit, not a better drawer:

  • capture every business receipt on the day
  • check monthly that every business payment on your bank statement has a matching receipt
  • keep the images, and a backup, for as long as HMRC requires, which is at least five years after the 31 January filing deadline for sole traders and landlords. See how long to keep receipts

On the Business plan, Receipts Keeper can also copy each receipt image to your own Google Drive, so there is a second copy you control.

Sources

This article is general information, not tax advice. If you are unsure whether a copy is good enough for a particular claim, check with HMRC or an accountant.

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