First VAT return

[jeannieb]

Hi everyone

I have just joined the forum having found it when I googled my question. I wish I had found it sooner.

My husband has been in business since 01.06.08 trading as a limited company. We became VAT registered from 01.05.09 and I am just completing our first VAT return (abbreviated 2 month as requested by HMRC). I know we can claim VAT back for 3 years on 'goods' and 6 months on 'services' but I don't seem to be able to find a definitive list of what qualifies as 'goods' and what qualifies as 'services'.

We registered our business name in March 2007 and it was dormant for a time along with our web address. Both of these incurred fees with VAT on. Our premises we paid rent on from 01.12.07 with VAT and we paid VAT on the lease agreement. All the earlier bills are in my husband's name not the company name.

My question is what comes under the term 'goods' and what comes under the term 'services' as I've read a few sources and no one seems to concur, and can we claim on any of the above if it was in my husband's name not the business name and if so for how long previous to our vAT registration date.

Finally if I get it wrong and miss claiming for stuff I could have, do I have another chance to get it right when the accountant has had a look at our books when preparing our end of first year accounts.

Sorry this is so long winded!

Thanks

Jean

[Zeno]

It would probably be a better idea to get your accountant to help you prepare your first couple of returns until you get the hang of it.

Have you considered the flat rate scheme? It very likely will be beneficial to you. http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm

[jeannieb]

We have only just got in touch with an accountant and the quote they gave us did not allow for VAT returns assuming they are simple enough to do if you have an accounts package which we do. Of course it is only as good as the data I put in.

We discounted the flat rate sheme as we have considerable overheads on our business premises which are all Vatable.

Thank you for taking the time to reply anyway.

[Rainbow Chasers']

I would advise an accountant, and make sure a receipt is provided when it is put in!

You can do it yourself, but the revenue have this awful habit of mislaying your first one - happened to lots of people!

[David Griffiths]

For me, goods have to be something tangible that you can touch. Anything else is a service. That means that company formation, web domains and rent are all services, along with the legal fees for the lease.

The main exception to this is building work which is defined somewhere in the VAT rules as a service, even if it involves lots of materials

It seems to me that the early stuff is outside the 6 months limit, so it doesn't matter which name is on the bills. Moving forward you should ensure that all of the bills are addressed to the company so there's no doubt about its entitlement to claim the VAT

There is an overall three year limit on claiming things that you have missed - or on HMRC assessing you for things that you have overclaimed, so you'll be OK if something is picked up at the year end.

[jeannieb]

Thank you very much - this is exactly the information I was looking for.

[sheelagh]

One additional point about goods you can claim for, which is particularly relevant if your business sells goods, or if you buy materials in order to provide services (eg plumbing, motor repairs, computer components)
You can only claim back VAT on goods still in the posession of the company at the time of registration. So, if you have bought stock or spares etc you can only claim back VAT on the items you haven't yet sold, or items which have been sold/used up as part of a sale with VAT added.

[hdtimes]

I am preparing my first tax return as well. Two questions about the VAT for "goods"

1) Can we claim VAT for the goods imported but have not sold?

Before we registered VAT, we imported some goods for resell. They
were cleared under the TURN (Pseudo Turn Number). Some of them are still in our warehouse. Checked on the net, some advised that we could claim VAT back for these goods, others advised that we could not claim VAT for these goods since we do not have C79. Which one is correct?

2)Can we claim VAT for the goods under director's name by using company's credit card?

Purchased goods online by using company's credit card, in which our director is the card holder. The invoice was issued to him rather than company name. Can we still claim back the VAT?

Thanks for your help

May




One additional point about goods you can claim for, which is particularly relevant if your business sells goods, or if you buy materials in order to provide services (eg plumbing, motor repairs, computer components)
You can only claim back VAT on goods still in the posession of the company at the time of registration. So, if you have bought stock or spares etc you can only claim back VAT on the items you haven't yet sold, or items which have been sold/used up as part of a sale with VAT added.

[jeannieb]

Thank you to eveyone who took the time to answer my question.