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Rakhi Vasavada
Rakhi Vasavada , Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4419
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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Hi, I have just put in a environmentally friendly heating system

Customer Question

Hi, I have just put in a environmentally friendly heating system in my business premesis which I am currently building. I have been told I can claim 100% of this against tax. However there is 20% VAT on it if billed to the business to reclaim it, but only 5% if billed to me as an individual like the rest of the rennovation which I assume (like the rennovation) I cannot claim back on. I am not VAT registered. Which is better for me to do?!

Thanks
Submitted: 5 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 5 years ago.

Dear Friend,

 

You are using environment friendly systems in your business premises and you can certainly claim 100% of this against your tax.

 

I would advice you to kindly get formally registered it VAT (get your business registered) and thus formalize your purchase. Along with this, this will be overall beneficial as you would be anyway using the said systems in the building which has a business purpose. So, I would suggest you to get registered with VAT and then claim your spendings.

 

I am sure this would help...

Warm Regards,

Customer: replied 5 years ago.

Ous is a vey small bisnuess and we have been advised that it is not worth us being VAT registered.We can claim back 100% including the VAT against tax but as it cost more that jsut buying it ourselves is it worth it?

 

Expert:  Rakhi Vasavada replied 5 years ago.

Dear Friend,

 

Yes, it is still worth it. Getting VAT registered cannot be as costly as equal to buying the environment systems yourself. It is certainly beneficial to get registration and its worth it. You may consult proper local person to guide you with VAT registration.Alternatively you may do it yourself online at http://www.hmrc.gov.uk/vat/start/register/how-to-register.htm

 

You will also be able to reclaim VAT on purchases prior to your date of registration http://www.hmrc.gov.uk/vat/start/register/purchases-before.htm

 

You may have all your VAT queries answered at http://search2.hmrc.gov.uk/kbroker/hmrc/contactus/search.ladv?sr=0&as=1&cs=ISO-8859-1&sc=hmrc&sf=&sm=0&nh=50&ha=34&tx0=67&fl0=contactid:&tx1=&raction=view

 

 

I hope this helps...

Regards



Edited by rakhivasavada on 2/7/2011 at 2:53 PM EST
Customer: replied 5 years ago.

Will get more advice on this and get back to you. Pehaps for this item it is worth it but not for the day to day running of the business which is why we were advised against it. Will check it out if it is more hassle than it is woth just for one item and come back to you then

 

Expert:  Rakhi Vasavada replied 5 years ago.

Dear Friend,

 

Sure, no issues.. I hope this advice remains useful to you.. As per my knowledge, there is no day-to-day trouble that one encounters after obtaining VAT registration.You should go for it..

 

I hope this helps...

Warm Regards,