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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4434
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 been asked this question by a client today, I was

This answer was rated:

Hi, I have been asked this question by a client today, I was unaware that you clain back VAT from before the company had started, please can you help me out on this point?

"I believe I'm right in my understanding that when limited companies make their first return for the first quarter, HMRC often shells out a large slab of reclaimed VAT for the previous 4 years. These are for assets still owned by the business, or for VAT paid in pursuance of the business, even though the company was not incorporated at the time of the expenditure. There would of course be VAT to be paid on any invoices within the first quarter and it is the difference between this and the VAT claimed that represents the amount of the refund."

Many thanks

Rakhi Vasavada :

Dear Friend,

Hello and welcome. Thank you providing an opportunity to assist you.

Kindly remain online for a while as I prepare your reply.

Rakhi Vasavada :

You are perfectly correct to understand this.

Rakhi Vasavada :

HMRC enables / provides for reclaiming VAT dating back to as much as four years prior to incorporation.

You can refer this at :

http://www.hmrc.gov.uk/vat/start/register/purchases-before.htm#1

Rakhi Vasavada :

It is also correct that you would pay VAT on any invoices within the first quarter and it would be the difference between this and the VAT claimed that would qualify as a refund.

Rakhi Vasavada :

Are you there ? Do you see my responses ?

Customer:

Yes, thank you for your help

Rakhi Vasavada :

I am glad that this helped. Is there anything more I can assist you with ?

Customer:

No, that was all thank you.

Rakhi Vasavada :

You are most welcome. Please feel free to revert back with a reply if you need further assistance. In future, if you need to reach out to me, you may just prefix "For Rakhivasavada..................." before your question and you would reach me. Kindly spare a moment to rate this conversation positively.

Warm Regards,

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