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Just registered for VAT, can I back date claim?

Discussion in 'Accounts & Finance' started by Publicity Oxford, Feb 23, 2009.

  1. Publicity Oxford

    Publicity Oxford UKBF Regular Free Member

    Posts: 88 Likes: 5
    Hi there
    Just updating my books to record VAT charged on invoices and paid on expenses.

    Do I start claiming VAT back moving forwards, or is there a period I can claim back for in the past on items I've purchased?

    Thanks for your help.
  2. elainec100@cheapaccounting

    elainec100@cheapaccounting UKBF Regular Full Member

    Posts: 13,271 Likes: 2,871
    Claiming for vat on items purchased prior to registration

    When you register you can look back over your purchases and in some circumstances you can reclaim vat:

    · for goods: you can reclaim VAT up to three years before you registered for VAT
    · for services: you can reclaim VAT up to six months before you registered for VAT

    There are certain conditions which need to be met to be able to do this so have a look at the full guidance which can be found here:

    http://www.hmrc.gov.uk/vat/reg-reclaim.htm

    Note these conditions:

    Reclaiming VAT on goods you bought before registration


    You can reclaim VAT on goods you bought or imported no more than three years before you were registered for VAT if the goods:

    · were bought by you as the 'person' who is now registered for VAT
    · are for your VATable business purposes, eg they do not relate to any exempt items that you sell
    · are still held by you or they have been used to make other goods you still hold

    You can't reclaim VAT on goods that you've completely used up before you registered for VAT such as petrol, electricity or gas.

    So for items already sold onto customers you cannot claim the vat.
  3. Publicity Oxford

    Publicity Oxford UKBF Regular Free Member

    Posts: 88 Likes: 5
    Thanks Elaine, that's really helpful, am trying to find my way around the HMRC website!!!
    If I opt for the flat rate scheme, which their calculator is saying is best for me, do I then not qualify to claim VAT back on previous purchases? I can't find anything that says?
    Also, if I'm on the flat rate scheme, do I not need to make a note of VAT charged on invoices, or on purchases?
    Thanks again Elaine.
    Also, can you PM me about costs of your services for helping me through my first VAT return?
  4. elainec100@cheapaccounting

    elainec100@cheapaccounting UKBF Regular Full Member

    Posts: 13,271 Likes: 2,871
    yes you can still claim on purchases prior to registration

    you show vat on all sales invoices at 15%

    you do not need to record vat on purchases

    have a read of this:

    http://www.hmrc.gov.uk/vat/account-flat.htm