Create a Company - Claim back VAT?

anotheruser

Is it that simple?
I can create The Company LTD and then when buying stuff, send all the receipts to the taxman to get refunds on VAT, providing it is bought for that company?

Grumpy_chap

The company will need to be VAT registered also.
Beyond startup expenses, the Ltd Co would only incur limited expenses against which to reclaim VAT unless it is properly trading.

Martico

Also, VAT inspections are regular and thorough, at least they were when I did the accounts for a small company several years ago. If The Company LTD is just a front for your personal expenses, you'll get found out and possibly banged up.

Edit: I should probably add that everything to do with the business and our returns were always in order. But the inspections were very thorough

comeandgo

If you trade using a ltd company you will need to buy it, register it, submit yearly accounts.  If you are continuously getting vat repayments with no sales going through it would spark off an investigation and there are heavy penalties for VAT fraud.

jamesperrett

It has been a few years since I was VAT registered but back then I was registered as a sole trader so didn't need to formally file accounts although I had to do a tax return. Obviously you need to be running a proper business as they expect you to be charging more VAT than you are reclaiming (unless you have a good reason). In the 10 years that I was registered I had two inspections - the first inspector was very helpful and actually suggested that I should be reclaiming more VAT than I was although the second seemed a bit stricter.

DontBringBertie

comeandgo said:

If you trade using a ltd company you will need to buy it, register it, submit yearly accounts.  If you are continuously getting vat repayments with no sales going through it would spark off an investigation and there are heavy penalties for VAT fraud.

Plus the cost of an accountant would eat massively in to these (probably fraudulent) VAT savings anyway.

Numberwang_2

anotheruser said:

Is it that simple?
I can create The Company LTD and then when buying stuff, send all the receipts to the taxman to get refunds on VAT, providing it is bought for that company?

 Yes it is that simple if you have friends in the Conservative party, but for the rest of us I think it would be a no.