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bigduckontax
bigduckontax, Accountant
Category: Tax
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There, I have a client, who has bought a shop and this

Resolved Question:

Hi there,
I have a client, who has bought a shop and this is now used as a laundrette.
Ha has paid solicitors fees, in the purchase of the shop and paid vat on the said fees.
Can the vat be reclaimed as a good or service, as it was paid before the company registered for vat.
Many thanks.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. This is a very common occurrence on setting up a business and the VAT should be reclaimed as an input on your client's first quarterly return. The first return for any business in invariably skewed as large expenditure against low income or even no income at all is inevitable. I do hope my reply has been of assistance.
Customer: replied 1 year ago.

I wondered if it would be considered a good or a service; the fees being for the property purchase, as my client wasn't registered for VAT immediately and I need to know if he has the 4 years or 6 months to claim.

Expert:  bigduckontax replied 1 year ago.
Here is an extract from the Gov UK web sit covering this matter: 'There’s 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 have6 months for services'This is for the purchase of items that are still being used, the premises, so he has 4 years to claim. However, the guidance is pretty clear that such reclaims should be processed through the first quarterly return wherever possible.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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