Claiming back VAT for computer purchases

bchuaj

I'm working full-time and is now planning to start up a small business operating on part-time basis. I will be purchasing some computer equipments etc to kick-start my business. If I keep those VAT receipts for my purchases can I still claim back VAT if the business do not make any profits at the end of financial year? Any help is very much appreciated.

bchuaj

mymatebob

If you are VAT registered - yes

HMRC website is very useful

bchuaj

Hi mymatebob,

Thank you for your quick response. Yes, I am considering the business to be VAT registered. So I guess claiming back VAT for goods purchase to operate my business has got nothing to do with whether the business make any money (i.e. income). Will the tax man question why my business is not making any money or very little, while on the other hand I'm allow to claim VAT for goods bought to run my business? Does this rule still stands if the business is a 'Limited Liability Partnership' etc as long its VAT registered. It would really help if you could direct me to the URL in HMRC as I do not seem to be getting any luck with looking for what I want. Also, do you know any good website which have well written information about starting a new business? Sorry for so many questions and appreciate any help.

Regards,

bchuaj

Quentin

Your profits don't come into the vat system.

But if you only make claims for VAT refunds (ie don't make any sales, and collect VAT on them), then they will look closely at you to make sure you are a bona fide business, and not just using your vat registration to reclaim vat on your "business" expenses.

mymatebob

http://www.hmrc.gov.uk/ is the home page

but this may be the page you are after

http://www.hmrc.gov.uk/businesses/