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VAT Preregistration claim

VAT Preregistration claim

I have a client who's turnover reached the VAT threshold in November so we have registered the business for VAT with an effective date as the 1st December. The question is can we claim 6 month for certain travel expense like hotel bills, meals etc. I understand that you can claim back for 4 years for equipment so long as you still have it and 6 months for 'consumables' which these may fall into. I rang the VAT helpline and the woman I spoke to told me to read the 700 main VAT guide (section 11 & 12) she couldn't say for certain but told me to read the guide and see what I though. Great helpline!



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10th Dec 2012 14:20

The rules are clear:-


assets used in the business and goods for resale held at the date of registration which were bought within four years previously, and on which VAT was incurred; andservices received for the purpose of the ongoing business within six months prior to the date of registration.

Can be reclaimed on registration.


The question is - do these mileage claims relate to the period before registration? If they do, then they cannot be claimed. If they relate to sales after this date, then they can be claimed.





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10th Dec 2012 18:18

Why 1st December?

If the 12 month turnover reached the registration threshold only in November, you had until 1st January to register.

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10th Dec 2012 19:09

I disagree, Euan

You have 30 days from the end of the month of breach of the limit to register, but effective from 1st of the month following breach. In this case, business must notify requirement to be registered by 30 December, and registration will be effective from 1 December.

On the question of mileage claims, these are not services and  therefore excluded from a pre-reg claim. (but the OP is not talking about mileage claims)

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11th Dec 2012 10:37

I disagree, BKD

VAT Act 1994, Sch 1, Para 5 (2) "The Commissioners shall register any such person...with effect from the end of the month following the relevant month [the month in which the reg limit is breached].."

Over in November (the relevant month), registered from the end of the following month that being the 31st December so registration begins after midnight 31st December e.g. EDR 1st January 2013 00:00:01

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11th Dec 2012 10:58

Apologies to Euan

You (and spidersong) are both correct - don't know what I was thinking. I'm aware of the rules, but in my defence I had looked at a recent CCH example where limit was breached in May 2012. CCH's view is that notification must be made by 30 June 2012, with effective date of registation being 1 June 2012. Clearly a typo, which I'll bring to their attention.

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11th Dec 2012 11:13

30-day rule

You weren't looking at the 30-day rule were you?  The registration due date and applicable date would appear to apply to that case.

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11th Dec 2012 11:27


The CCH example was specifically looking at the historical turnover test

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By Spudsy
12th Dec 2012 16:35

Hotel in the six months
Does this mean the hotel, meals etc that were in the six months can be claimed? I thought they could until I checked with the vat office

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By Spudsy
14th Dec 2012 09:44

Notification period
I did check with HMRC About when to register for VAT and because of proforma invoicing and other details I don't think I should go into on this forum is the reason for registering at this point.

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17th Dec 2012 13:33

Pre-reg VAT

As has been stated, SERVICES received in the six months prior to registration are eligible for VAT reclaim, but GOODS are only eligible if they are still owned by the business at the date of registration.

Meals and hotels are services received so are eligible for VAT reclaim.

Mileage - the VAT here relates to the fuel cost. The fuel represents goods and as the claim has been made, the fuel must have been used so is not owned by the business at the date of registration. It is therefore ineligible for VAT reclaim.



Malcolm Greenbaum

Director, Greenbaum Training & Consultancy Limited


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By Nelly
17th Dec 2012 14:09

VAT Issue


Please can someone help?

Someone came to me last week asking to take him as a client.

I went through the paperwork and realised that he has been charging VAT to his customers with not prove of VAT registration through HMRC. I advice him to register as soon as possible if above the treshold (£77 000) or pay all the VATthat he has already collected  back to his customers.

Please can someone tell if he/she has been in the same situation ?

Thank you for your help.



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17th Dec 2012 17:30

Recruitment agency exempt or not for vat

I could do with some help as well.  A recruitment agency supplying local authorities with care workers has come to us.  13 months to end of August they had turned over 90k and its snowballing fast.


They are of the opinion they are exempt from vat, I am not so sure.  

Has anyone dealt with agencies supplying care workers, please?

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By Spudsy
18th Dec 2012 13:50

Thanks for the help doubt sets in when you get conflicting opinions.

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