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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I started a company and have made purchases but no sales to

Resolved Question:

I started a company and have made purchases but no sales to date (it is a film company with one single product, i.e. the film). I would like to know if I should register for VAT, i.e. could I claim VAT back? My total expenditure is under £30,000.
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

You are able to backdate claims for VAT paid before registration. There are limits as follows:
- 4 years for goods you still have or that were used to make other goods you still have or
- 6 months for services

More information on it and confirmation of it can be found here
https://www.gov.uk/vat-registration/purchases-made-before-registration

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.

Hi sorry that's not the question I wanted replied. I don't know much about VAT. I wanted to know whether I could and should claim a repayment of the VAT on the goods and services I have purchased, e.g. lighting equipment; computer equipment; props etc., without having started 'trading' yet.

Expert:  taxadvisor.uk replied 2 years ago.

Omar, thank you for your reply.

Once you register for VAT, then you will be able to make a backdated claim for VAT paid out on your purchases even though you have not made a taxable supply (sale) as yet.

Thereafter, you would file a quarterly VAT return and either make a payment or have VAT repayable to you based on your activity in the quarter.

I hope this is helpful.

Customer: replied 2 years ago.

Thanks, ***** ***** will I receive an immediate cash payment for this?

Expert:  taxadvisor.uk replied 2 years ago.

Omar, thank you for your reply.

You may not receive an immediate cash repayment. Normally HMRC try to make repayments within 4 weeks of submission of VAT return.

I hope this is helpful.

If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it.

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