Can I claim expenses without receipts?
Are paper receipts a legal requirement?
Every employee knows the scenario well; train ticket purchased, receipt shoved into the bottom of a bag, taxi receipt crumpled into a wallet, dinner with clients and the receipt got left on the table. Then when expenses time comes at the end of the month, employees scramble around in bags and pockets looking for those precious receipts.
So do you really need paper receipts to be able to claim expenses?
There is actually no UK regulation that says paper receipts need to be kept for the expense claim to be processed. HMRC has made it clear that provided the information is legible, a digital copy of the paper document is fine to process expenses.
However, this isn’t the only problem faced by employees and businesses when it comes to expenses. The entire process is time-consuming and cumbersome. Employees spending time filling out their expense claims, only for the finance department to spend more time processing them creates vast inefficiencies in many small to medium businesses.
Employees become disheartened if they lose receipts and feel they are out of pocket and business owners often feel as though company spending on employee expenses is out of control.
Streamlining the process
Thankfully there is a solution to this problem that will not only streamline the process for employees; it gives business owners and finance departments a better way of managing expenses.
Here at Soldo, we have created a prepaid business card that can be issued to employees for the use of business costs. The beauty of this card is that is can be controlled by the finance department. Limits can be set per card, thereby preventing runaway expenses and unexpected large reimbursement payouts at the end of each month.
In addition to the prepaid company card, employees must be aware of and understand your company’s spending rules. Spending rules can be defined in an employee expense policy, so staff can be aware of what is allowed and what isn’t.
Employees no longer have to pay out costly fees from their own pocket, which can often result in low-morale, especially for lower-income employees. The elitism (and unpredictability) of the business credit card, which is usually reserved for higher management, can be removed, bringing everyone onto a level playing field by issuing all staff with a prepaid business card.
How the card works
- Control – Soldo’s prepaid cards give finance teams power over which transactions are approved, so team members can only spend within their own personal rules and limits.
- The back-end platform – Administrators (usually members of the finance team) have exclusive access to the dashboard. There, they can see all transactions in real time, top up individual cards, set rules and limits, filter data by department and expense type (travel expenses, entertainment expenses etc.), and export data to create insights as to where and how money is being spent.
- Soldo’s dashboard integrates with all significant expense software, including Xero, Sage, Quickbooks and more.
- Expenses – Once you’ve paid for something, it becomes an expense. Soldo’s cards enable you to control spending before it ever becomes an expense, as well as making the management of expenditures themselves more straightforward.
- Rules and limits – What a team member can and can’t do with the card, is managed via the dashboard. Rules might be geographical (e.g. they can only use the card in the UK), purpose-based (e.g. they can only use it for travel) or time-based (e.g. they can only use it until the end of the week). How much any given member of staff can spend with the card is also determined in the dashboard by the administrator.
- Virtual cards: Dashboard admins can instantly generate “virtual cards” for online spending, so employees on the go can get access to company funds quickly.
- Soldo app: With the Soldo mobile app, an employee can take a photo of any receipt and send it through to the platform. This automated reporting saves employees from having to fill in a spreadsheet manually and submit loose receipts.
- Spending: Soldo’s prepaid cards give finance teams control over which transactions are approved, together with personal rules and limits.
- Efficiency: Employees no longer have to track receipts and spend precious hours processing their expense claims.
Our prepaid card is the ideal solution to easing cash flow and expense management, and it sees the end of petty cash. Managing costs is an unwelcome overhead in most businesses. Why not change the process and improve the productivity of both employees and the finance department.
Get in touch for more information about the Soldo card and get your businesses expenses under control today.