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The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Reclaiming pre-registration VAT
Post Info TOPIC: Reclaiming pre-registration VAT
Bucks Bodger


Senior Member

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Reclaiming pre-registration VAT
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I am doing a VAT return for a company which registered for VAT earlier this year, and they have asked me

to reclaim the VAT on their expenditure pre-registration. Fine with that, have disallowed some of what they wanted to

claim but mostly it can be justified.

 

My difficulty is that this is not their first VAT return, and in HMRC's guidance it says you should reclaim the VAT on

goods bought pre-registration on the first VAT return (in typical form, they were late with the first return so it was

all done very hurriedly to avoid a penalty!) Does this mean they can't reclaim the VAT now, is it too late ?

 

Also, if they can reclaim the VAT, HMRC says "You reclaim VAT on goods bought before registration by including their

value in box 4 of your first VAT Return". That seems a bit ingruous to me, I guess they mean put the VAT figure in

Box 4 in the usual way, but does one put the goods value in box 7 ?


As you will have twigged, this return is also going to be late if I don't submit it today, so prompt answers will be gratefully received !



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Eunice Cubbage
Cheshire


Master Book-keeper

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Date:
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Hello there
Im hoping youve sorted this by now as its more than 10 hours since you raised it, on deadline day. If not - maybe this will help:-

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&propertyType=document&id=HMCE_CL_000077



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
leshoward


Senior Member

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Strictly, pre-registration VAT does have to be included on the first VAT Return. However, adjustments to VAT Returns can be made on later Returns. So, there seems no reason why you cannot include input tax on a subsequent Return.

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Bucks Bodger


Senior Member

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Posts: 206
Date:
Permalink Closed

Thanks for the replies - as it turned out, when I came to submit trhe return, it said one wasn't due so I couldn't do it anyway!

A telephone call from the Client to HMRC today has established that it has been set up (wrongly) as an annual return (not by
me, I hasten to add!)

Doh !

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Eunice Cubbage
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