I'm planning to register for VAT when my turnover hits £85k. I keep reading that I can claim VAT on goods and services up to four years prior to registration (6 months for services) but nowhere does it talk about then also having to pay the output VAT on sales in the same period. Is this correct?
I make purchases of £20k in January.
I make £50k worth of sales in Feb.
In March I hit the threshold and register for VAT.
I decide to claim VAT on the £20k of purchaes in January under the pre-registration rules.
Do I then also have to pay the VAT on the £50k sales in Feb?! If you do, then I don't seen the point of the pre-registration rules as you may as well have gone for volentary registration in the first place (if Input VAT was higher) or don't bother with pre-registration claims (if Output VAT was higher)?