VAT - Regulation 111

[yorkshirejames]

Folks,

Do others believe that it is still the case that a business can go back six years with a VAT claim - that is to register the business three years prior (so September 2006) then claim VAT on goods still in their possession upto three years prior that (so Sep 2003)?

I can't seem to find anything that contradicts this, and http://www.taxationweb.co.uk/tax-articles/vat/vat-recovery-on-pre-registration-costs.html appears to agree (but noting that this was 5 years ago).

Thanks in anticipation
James

[spidersong]

At the moment I'm seeing a number of businesses registering with a date of registration in the early 90's, and claiming their input tax back.

Admitedly this is on the back of a specific case relating to residential care (Kingscrest) and so won't apply to most, but in certain cases you can go back 20 or 30 years!

In relation to most people however, then yes HMRC will consider voluntary registration up to three years previously, and Reg 111 has been unchanged for donkeys years (although I'm not sure how donkey's years differ from ours would've thought it's still 365 days, or do they have different days too?) so if you're elligible to backdate the reg then you can get up to 6 years recovery on goods.

[yorkshirejames]

but in certain cases you can go back 20 or 30 years!

I'm curious to ask more. I was aware of Kingscrest, but I'm not sure what else you are referring to.

[spidersong]

This is just Kingscrest, apologies if my comments misled. I was merely refering to the fact that registration under 'Kingscrest' will be dependent on having suitable records and getting the agreement of suppliers, which not all care homes will have/get, and so the period of registration will vary greatly. Most are going back to the mid-nineties but I have seen them going for the early eighties.