• 23 Mar 2017

When you register your business for VAT, you can reclaim the VAT you paid on stock or assets acquired in the four years before the date of registration, if you still hold those assets on the registration day. You can also reclaim VAT incurred on services purchased for business purposes within six months before registration.

Suppose that you bought a new van for £24,000 (including £4,000 VAT) to use in your business on 1 December 2013. You register your business for VAT on 1 March 2017 and still own the van at that date. You can reclaim the full £4,000 of VAT you paid when you bought the van, although by March 2017 the van is over three years old.

HMRC had been arguing that the VAT reclaimed on assets such as your van should be reduced to reflect the reduction in the asset’s value between its purchase and the VAT registration day. This has been shown to be the wrong approach: all the VAT can be reclaimed.

If you reclaimed only a proportion of the VAT incurred on the purchase of assets acquired before becoming VAT-registered, you can amend your claim to recover the full amount, if less than four years have passed since your initial claim. It’s worth checking your old receipts to see if there is additional VAT you can reclaim.

How to deregister for VAT
Previous post
VAT flat-rate changes
Next post

4 thoughts on “Claim VAT on pre-registration costs”

  1. ask everything that was always rectify almost Sonic games and {make|brand|shuffle|shuffling|get|create|induce|stimulate|cause|have|get|cause|produce|create|draw|create|gain|take in|clear|earn|realize|realise|pull in|bring in|form|constitute|reach|get to|progress to|construct|build|name|nominate|have|get|reach|attain|hit|arrive at|gain|lay down|establish|hold|throw|have|give|cook|fix|ready|prepare|make up|take|stool|defecate|shit|take a shit|take a crap|ca-ca|crap|work|seduce|score|pretend|make believe|urinate|piddle|puddle|micturate|piss|pee|pee-pee|make water|relieve oneself|take a leak|spend a penny|wee|w

  2. W88 Casino Review
    Established in 2013, W88 has been a leading online gaming site in Asia for quite a while.
    During this time, the operator has earned a great reputation among players thanks to its wide range of activities,
    which include casino games, sports betting, lottery, live casino games and poker.

    The W88 site is well-known for its commitment to customer
    service, offering players the chance to claim generous bonuses regularly.
    So, it while it seems like this casino is
    packed with great games and customer service,
    let’s find out if there’s more to it than this.

Leave a Reply

Your email address will not be published.