Can I claim VAT back?

carlwhiteley

Hello
3 years ago i started running events which became a business. I registered as self employed. I was told to keep all receipts as I can claim back VAT . I am looking at doing this but have just been told that I had to be registered for VAT.
Does anyone know if I can claim back all the VAT I paid on services and goods? or have I missed out now?
Any help or advice would be great. :beer:

podperson

You can reclaim on some things purchased before you're VAT registered but the rules can be a little complicated. I think it's up to 4 years back for goods and 6 months for services but as far as I recall they need to be things that you still have in the business when you register for VAT so eg you can't claim for stock that you've already sold and things like petrol/electric that you've already gone through. I would suggest contacting HMRC as they will be able to advise in more detail.

leveller2911

carlwhiteley wrote: »

Hello
3 years ago i started running events which became a business. I registered as self employed. I was told to keep all receipts as I can claim back VAT . I am looking at doing this but have just been told that I had to be registered for VAT.
Does anyone know if I can claim back all the VAT I paid on services and goods? or have I missed out now?
Any help or advice would be great. :beer:

I may be mistaken but if you intend to back date a vat claim on services etc that you have paid vat on you would also be liable for all the VAT on the services you provide, as you won't have been charging your clients vat ....Think you can claim vat back that you have paid out on tools,machinery,stock etc .

BryanSmallBiz

I don't agree with leveller2911, you are not liable for VAT on services provided before you register.
When I registered about 4 years ago I could reclaim VAT on products back for three years and for services in the last six months. Now that was a sweet deposit into my account from HMRC.

paddyrg

You can generally reclaim VAT on goods you bought up to four years before you registered for VAT, and services you bought up to six months before you registered. Remember too that you may be able to backdate your VAT registration by up to four years although once your date of registration has been agreed with HM Revenue & Customs (HMRC), it cannot normally be changed.
There are conditions you must meet in order to reclaim this VAT, including keeping specific records of what you bought and how you use, sell or dispose of them.

from http://www.hmrc.gov.uk/vat/start/register/purchases-before.htm

Don't trust advice from a forum, trust HMRC and HMRC alone!

JasonLVC

BryanSmallBiz wrote: »

I don't agree with leveller2911, you are not liable for VAT on services provided before you register.
When I registered about 4 years ago I could reclaim VAT on products back for three years and for services in the last six months. Now that was a sweet deposit into my account from HMRC.

Yes, but the 4 years for goods and 6 months for services rule starts from the date you register for VAT.

So if the OP wants to claim VAT on services they incurred in say June 2010, they'd have to register for VAT from at least January 2010 in order to reclaim this VAT. If they're registering from January 2010 to reclaim this VAT it also means any sales from january 2010 they make will be subject to VAT.

I think that is what leveller was trying to point out. For goods it is less vital as you have 4 years from date of registrtaion to reclaim input tax but an events business would, I believe, consist mainly of services (buying in rooms, hiring equipment, etc) so mostly services = OP can only reclaim last 6 months from date of registration and if they want to avoid paying VAT over on their sales they need to look at their sales over the last couple years to see what the VAT recovery vs. VAT liability to HMRC woud be to see if worth while.