New company, need advice for being VAT registered

[J_Alexander]

Hi, I have started a new company and will soon be VAT registered and would like to claim VAT back on all the equipment and other business expenses but I am unsure if I can do this within the first 3 months if trade/sales have been low. What is the maximum amount allowed to claim back for VAT paid by my business? The equipment and stock is over £100k

 

[Scalloway]

When you submit your first VAT return include all the VAT on all your expenditure. HMRC will almost certainly ask to see copies of the biggest bills before they repay you. I did this a few years ago and it took a couple of phone calls before the funds were released.

 

[pentel]

There is no maximum. There does need to be supporting documentation and expect to be questioned.

 

[WaveJumper]

With the numbers you're talking about I would strongly advice getting yourself an accountant and make sure you get the business off on the right footing

 

[lesvatadvice]

As above. This is called a Regulation 111 claim; you can claim VAT incurred from before you were registered; but this is subject to certain conditions. Bets advice is to sit down with an Accountant or other specialist to maxmise your recovery.
And, you should consider various VAT schemes which you may be eligible for. These can provide administrative and cash flow savings.

 

[MyAccountantOnline]

... What is the maximum amount allowed to claim back for VAT paid by my business? ....

The input VAT legitimately incurred.

 

[DontAsk]

Hi, I have started a new company and will soon be VAT registered and would like to claim VAT back on all the equipment and other business expenses

You can claim for any stock you still hold bought in the 4 years previous to registering. You can claim for services received in the last 6 months.

You will need the VAT invoices in case you are asked to provide supporting evidence.

 

[J_Alexander]

Thank you for all replies, Yes I will speak to an accountant and get advise. My initial worry was having poor sales for the first couple of months but putting in for VAT returns that amount to a lot of money due to the equipment and stock costing a lot of money

 

[WaveJumper]

Like many a business you generally have to pile in a lot of money and resources to get things off the ground, so not unusual in the least and then if you've done your homework properly the sales will begin to roll in.

My advice as above was look for an accountant you can work with, speak to several before making your mind up, in my experience they will save you more than they charge and getting your company off on the right footing will save you a lot of sleepless nights.

Best of luck

 

[J_Alexander]

Like many a business you generally have to pile in a lot of money and resources to get things off the ground, so not unusual in the least and then if you've done your homework properly the sales will begin to roll in.

My advice as above was look for an accountant you can work with, speak to several before making your mind up, in my experience they will save you more than they charge and getting your company off on the right footing will save you a lot of sleepless nights.

Best of luck

Thank you, I have been wondering if some of the vat invoices I have are ok to submit as they are addressed to me not my company as they were bought in the pre planning stage before we chose a business name

They are for equipment so there is no disputing they are for business and not personal use

 

[DontAsk]

Thank you, I have been wondering if some of the vat invoices I have are ok to submit as they are addressed to me not my company

It will only become an issue if HMRC decide they want to investigate.

 

[paulears]

If you are a sole trader, and the invoices relate to obvious business purchases, it should be fine.

 

[Bobbo]

If you are a sole trader, and the invoices relate to obvious business purchases, it should be fine.

While sometimes people do misuse the word, OP has described the business as a "company" several times - indicating they are not a sole trader.

 

[MyAccountantOnline]

Thank you, I have been wondering if some of the vat invoices I have are ok to submit as they are addressed to me not my company as they were bought in the pre planning stage before we chose a business name

They are for equipment so there is no disputing they are for business and not personal use

Have a read here it answers your question https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit32000