Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
If you make exempt supplies you do not need to register for VAT. VAT threshold only applies to aggregated sales made of standard, reduced or zero rated supplies made. It does not apply to exempt sales.
Were you to register you could not reclaim input tax suffered, you have no output tax to charge as you make exempt sales.
May I suggest that you employ an accountant with a more comprehensive knowledge of VAT than is currently being displayed.
I am so sorry to have to rain on your parade, but at least you do not have the palaver of having to account for VAT.
I am sorry, please forgive me for being a little clue less in this area. I didn't mean exempt, I meant Zero rated.....Printed paper publications are zero rated.
Ah well, that does make a difference. I will withdraw my comments regarding your accountant!
If you register for VAT which you must if your taxable supplies approach or exceed the threshold, currently 82K. Full details of the process can be found here:
Here are the rule for reclaiming input tax suffered before registration and how to do it [source UK Gov web site https://www.gov.uk/vat-registration/purchases-made-before-registration] :
'There’s a time limit for backdating claims for VAT paid before registration. From your date of registration the time limit is:
You can only reclaim VAT on purchases for the business now registered for VAT. They must relate to your ‘business purpose’. This means they must relate to VAT taxable goods or services that you supply.
You should reclaim them on your first VAT Return (add them to your Box 4 figure) and keep records including:
From the tenor of your your question you will have a big chunk of input tax to reclaim on your first VAT return.
I have been involved in VAT accounting since it was first introduced over 40 years ago and am not aware of HMRC objecting to repayments of input tax. Indeed, I ran the accounts of one organsation who made exclusively zero rated supplies and to ease cash flow were allowed to make VAT returns monthly instead of the normal quarterly.
I do hope that my advice has been of asistance and trust that your application will have a beneficial outcome.