He pays £20,000 plus £4,000 VAT to shopfitters for a refurb.June 6, 2017 by Macalvins In fact, once you have registered your business for VAT the first thing you should consider is the possibility of reclaiming input tax on purchases of goods and services prior to registration.Not sure I'm explaining this correctly, but it doesn't look right and I wondered if anyone could help me with how I can correct it. Kind Regards Are you on Accrual or Cash accounting for VAT?My VAT for Q4 (charged VAT) was £4836.56 but the summary report under TAX Reports shows as £-14873.25 and I can't work out why. The VAT report in the Tax Summary reports on an accrual basis rather than cash, so it will likely differ to your VAT return figures which will report on cash paid/received.While you can claim a tax deduction from profits for these, tricky rules mean you might not be entitled to reclaim all the VAT.What steps can you take to maximise the VAT recovery?By contrast, VAT paid on raw materials bought and unused, or used to make, say, an item of stock which is on hand at the date of registration, can be recovered.The rules for VAT on pre-registration services aren’t that different for those for goods, but can be more generous.
What smeharg says is correct, there is no back dating an election for vat.I'm unsure why this looks different for this period only, whereas the others look okay.I didn't put in a journal entry for this quarter as the system created the journal for me when I used it for the last VAT Return.HMRC’s instructions on this issue confirm: There is a time limit for backdating claims for VAT paid before registration.From your date of registration, the time limit is 4 years for goods you still have, or that were used to make other goods you still have, and 6 months for services.
For example, VAT paid on rent in the six months before registration can usually be reclaimed, even though you might think that once a rental period ends the service must have been consumed.