Hopefully a simple question! I'm helping out a bookkeeper who has a client just registered for VAT. They are looking to claim back the previous VAT, they have a lot of travelling and subsistence receipts which the client believes he can claim back 6 months worth of these. Is this correct? I thought not but client is insistent that he can claim the VAT back. I'm not talking a massive claim here, maybe a few thousand in total including assets etc but I would just like to be certain.
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Pre-registration input tax
The HMRC link is: http://www.hmrc.gov.uk/vat/start/register/purchases-before.htm
Traveling and subsistence will be treated as services, so the 6 month rule applies.
Pre-registration input tax
The point is based on reg 111(a), which includes VAT incurred "for the purpose of a business which either was carried on or was to be carried on by him at the time of such supply or payment." Thus, where the taxpayer was already carrying on the business, VAT incurred is deductible, even though he was not yet registered.
Catering is a service, not goods (although the fast-food people are arguing it the other way!).