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bigduckontax, Accountant
Category: Tax
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Are there any issues with reclaiming input VAT in a new company

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Are there any issues with reclaiming input VAT in a new company that will likely be making quite substantial losses for the first 6-12 months?
Hello, I'm Keith and happy to help you with your question.
No, it is perfectly normal for a start up company to have substantial input tax to reclaim and minimal output tax to pay in its early trading. Indeed, you can even go back before formation and include relevant input tax suffered too.
It's a real Dad's Army 'Don't Panic' situation. Just make sure that your VAT accounting is accurate, up to date and records maintained. In the days of regular VAT inspections I once had a VAT Inspector demand to see the voucher for 13 pence, yes 13p, of input tax reclaimed!
I do hope I have set your mind at rest on this matter.
Customer: replied 3 years ago.

Thanks Keith. Just getting some comfort here!

Delighted to have been of assistance.
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Customer: replied 3 years ago.
I have received 7 emails in a few hours relating to this question. Perhaps it is because your last post is headed 'your expert needs more information' even though that is not the case.
I am so sorry, there is a glitch in the Just Answer system which is generating these annoying messages. Just Answer staff are aware of the bug, but have not yet managed to fix it.