VAT - what can i get refunded on

[Djfreema]

hey there,

i'm in the process of starting up my own company. i understand the VAT issues regarding payments/refunds. i intend to voluntary register for vat.

My question is what things can i be refunded on with VAT. for example i will be able to get the vat refunded on my stock i buy, computer, fax, phone etc..

what about travel costs such as petrol, monthly tube pass, postage (parcels), business lunches, the list is endless.

how do the vat office decide what should be refunded and what should not.

any help would be much appreciated.

[DuaneJackson]

You will be able to reclaim VAT on any legitimate business expense for which you have a valid VAT receipt.

[DuaneJackson]

Sorry, I should clarify what (in my limited understanding as a non-accountant) is a legitimate business expense.

Travel to and from your place of work isn't recalimable for VAT or even deductable against profits.

Other travel is OK if it's work related. I think you're meant to document who you went to see and what for.

For petrol, I think there is a set limit or some scheme or another regarding how mcuh you can claim back. Not sure about the VAT situation though.

I guess I should just shut up and let an accountant asnwer!

[KM-Tiger]

how do the vat office decide what should be refunded and what should not.
http://www.hmrc.gov.uk is a good resource.