A project has mixed vatable income say 50% vatable and 50% non vatable from donations. Say total VAT on income is £10,000. When recovering the VAT on the input side do you claim 50% of the total input VAT per vatable expense, which may add upto say £7500 input VAT, or can you claim upto £10,000 input VAT (to match the output VAT).
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the usual 'get proper advice' and 'you haven't given enough information' rules apply, I'm afraid.
How much input tax you can recover depends on what the input tax is incurred on.
Some CPD around partial exemption is needed, you can start here if you feel up to it
https://www.gov.uk/government/publications/vat-notice-706-partial-exemption
Is it a charity? If it is have you read 701/1, particularly 3 onwards?
https://www.gov.uk/government/publications/vat-notice-7011-charities/vat...