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Can CIO's claim back VAT for business expenses?

By CIO I mean a Charitable Incorporated Organisation

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Can a Charitable Incorporated Organisation claim back VAT in the same way as a business registered at Companies house can?

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By Ruddles
14th Feb 2018 15:38

Claim back VAT from whom?

Registration with Companies House has nothing whatsoever to do with an entity's VAT affairs.

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RLI
By lionofludesch
14th Feb 2018 15:38

Subject to the usual rules, like being registered, having a VAT invoice etc, etc, yes, of course.

What made you think otherwise ? Just in case there's something you're not telling us, like.

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Replying to lionofludesch:
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By jcace
15th Feb 2018 11:06

The usual rules including that the VAT is incurred in making VATable supplies, generally speaking, which might or might not be a problem for a CIO.
I suggest the OP reads VAT notice 701/1 https://www.gov.uk/government/publications/vat-notice-7011-charities/vat...

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By Portia Nina Levin
15th Feb 2018 11:12

Is the CIO undertaking any business?

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Replying to Portia Nina Levin:
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By JamieSt
15th Feb 2018 11:18

We make plenty of purchases which incur VAT charges. We make a small revenue from providing services. We're a very small charity (CIO) so our revenue comes mainly from grants. That said, any saving we could make by claiming back VAT from HMRC (I presume?) would make a big difference to our costings as we pay a lot of VAT at present.

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Replying to Portia Nina Levin:
By Ruddles
15th Feb 2018 11:20

Which is another way of asking "is the CIO VAT-registered?"

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By Portia Nina Levin
15th Feb 2018 11:39

No it isn't. It's one (and the first) part of the question, "is the CIO a taxable person". Yours is another (later) part. There's just one (middle part) missing.

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Replying to Ruddles:
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By JamieSt
15th Feb 2018 11:40

No, we're not VAT registered. If we became VAT registered, could we claim back from HMRC VAT we make on business purchases like computers then?

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By Portia Nina Levin
15th Feb 2018 11:44

It all depends on whether or not you're entitled to be VAT registered. Take (paid for) professional advice.

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Replying to Portia Nina Levin:
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By JamieSt
15th Feb 2018 13:54

We're a small charity, I'm using this as we can't afford 'paid for' advice. We got this far by doing things for ourselves and a lot of help from lovely people like yourselves on the Web. ;)

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Replying to JamieSt:
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By lionofludesch
15th Feb 2018 12:40

JamieSt wrote:

No, we're not VAT registered. If we became VAT registered, could we claim back from HMRC VAT we make on business purchases like computers then?

Well, that's the thing. Just because your CIO has a computer fdoesn't mean it has a business. If it doesn't have a business, it's not a business computer.

So - what is your business ? That's what we're trying to drag from you. Apart from getting grants, how do you raise your money?

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By Portia Nina Levin
15th Feb 2018 12:47

They sell some services apparently.

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By WhichTyler
15th Feb 2018 13:00

And even if there is a vatable business, it may not be responsible for all the input tax incurred. So they might point their accountant at the partial exemption rules...

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chips_at_mattersey
By Les Howard
15th Feb 2018 15:13

Do not rush into VAT registration. I would be surprised if it were to benefit you. You should calculate over the past year the potential input tax and output tax.
And, do check recently updated HMRC guidance on the VAT status of grant income.

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