I hope someone can offer some advice. We run a small computer and technical service company and are on the flat rate VAT scheme as most of our turnover is on services. We plan to start a radio advertising campain, including be placed on the radio stations website.
Is there anyway we can claim the VAT back on the advertising costs? It will cost over £2000 for the script creation and licensing of the music, and will cost £1350+VAT per month for the air time, we could pay 2 months at a time to get the invoice cost over the £2000 threshold.
If we could claim back the VAT it would be a real help, any advice gratefully recieved!
As far as I'm aware because you're on Flat Rate, you "can't" claim the vat on the advertising independently. What you're hoping is the scheme doesn't work against you because you're charging Vat at 20% but ,say, paying vat at 15% of Sales. So hopefully the 5% difference is greater than the vat on the advertising.
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
Thanks for the reply. We're actually only paying 9.5% as we're in our first year (normally 10.5%). I was just hoping someone may have a bright idea how we could claim it, a long shot I know!
