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Vat Claim - pre-registration

  • Associate PM.Dip
  • Practice Licence
  • 14 posts
  • # 117238

Hello,

I would appreciate your advice/help!  My client purchased a new van on the 16 July 2017.  He registered for VAT on the 1st October 2018.  He makes monthly payments to a finance firm.  He has now asked the finance company for the Vat information so that the "whole" of the Vat on the monthly payments can be claimed.  I cannot find anything out on the HMRC website other than you can "back-date claim for VAT paid before registration 4 years for the goods you still have or that were used to make other goods and 6 months for services."  Am I right in thinking I can only claim the Vat from the 1st October 2017 to date?

 

I look forward to hearing from you

 

 

 

 

 

 

 

 

  • Associate
  • Practice Licence
  • 14 posts
  • # 117245

https://www.gov.uk/guidance/vat-guide-notice-700#section11

 

Hi Janie,

 

The four years before 1 October 2018 would start on 1 October 2014, rather than 2017, wouldn't they?

In Notice 700 Section 11 it says:

"You do not need to reduce the VAT you deduct on fixed assets (for example a van or machinery) to account for any use of the asset before you’re registered, provided the asset is still in use in the business when you register", so if they specifically use a van as an example you can definitely claim the VAT back!


Yolande

  • Associate PM.Dip
  • Practice Licence
  • 14 posts
  • # 117246

Hi Yolande,

That's great, thank you!  I can go ahead and claim it for my client.

Best wishes

 

Janie

  • Associate
  • Practice Licence
  • 14 posts
  • # 117252

And the capital allowances need to reflect the fact that VAT has been reclaimed, I do not know if you do the capital allowances calculations, or if the client uses an accountant for tax returns?

 

  • Associate PM.Dip
  • Practice Licence
  • 14 posts
  • # 117255

Hello Yolande,

My client uses an Accountant to complete his tax returns - but I will let his accountant know that the Vat has been claimed. 

Thanks for pointing this out!

Best wishes

Janie

 

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