First VAT return - backdate claim

First VAT return - backdate claim

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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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chips_at_mattersey
By Les Howard
12th May 2014 17:17

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.

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By Sandnickel
13th May 2014 08:59

Thanks Les

I wouldn't have classed this as a service, but that's actually beside my point. My thinking was that this was a consumable i.e. used up before the start of the VAT registration. I always thought this was how it worked, you could only backdate the claim for goods and services still being used?

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chips_at_mattersey
By Les Howard
13th May 2014 09:37

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!).

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By Sandnickel
13th May 2014 09:41

Thanks!

That's very clear, thank you for taking the time to reply! Happy to be proven wrong as this will be very beneficial to him.

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