Pre-registration VAT saves you tax

[@Stucrompton1]

Thanks buddy

[@JB-pl8ce]

Brilliantly done cheers dude

[@TheLsmalley]

Very clear and useful info. Thank you!

[@cjsonconstruction6048]

Seems like you have some decent content. No videos made in the last two years. You should get back here and make some up to date ones as they’re the easiest ones to listen to when compared to the other UK accountants. Hope to see you soon

[@hamidsaghir9430]

Hi Benedict! Thanks for the video, can we claim the purchases pre-registration VAT for the goods that we bought for trading (sales)? also, do we need to pay the VAT over the pre-registration sales? (selling on Amazon UK)

[@lanaids5197]

Hello Benedict! First of all, I love your videos. I like the way you calmly explain things and always give useful advise. I got a question. Did I understand it right: in the box where it says to provide all of the expenses without VAT - I should only provide only those that I claim VAT for? And I do not need to include the expenses that don't have VAT on them or or the ones that I can not claim for. I am doing my first VAT return so I will be going through 4 previous years. And same with income transactions right? I hope this makes sense. Many thanks!

[@AccountingTeaBreak]

Thanks, glad I can help! Yes, just put in the expenses that you'll be claiming VAT for in this pre-registration stuff. So if you are going back through four years, you might only find a tiny fraction of your expenses are suitable, so you'd just put the amounts for those ones in, not for all the other expenses you *aren't* claiming for. But for everything AFTER your VAT registration date, those figures in box 6 and 7 are for EVERYTHING, even the stuff that is without VAT on it. So just the relevant things for pre-registration expenses, and then everything for after registration income and expenses. Hope that helps!

[@lanaids5197]

@@AccountingTeaBreak Thank you for the advise and your time Benedict.

[@manicminer3273]

How about fuel for business?

[@ossplus]

I am a Chinese and register a British Limited company, and plan to open a store on Amazon in the US through this company, I will not operate it locally in the UK and have no income from UK sources. In this case, is it UK tax-free (offshore tax-free)? If taxes need to be paid, what taxes need to be paid? Thanks.

[@lordred4116]

I spend a lot on hotels, and motoring expenses. Would I be able to claim these from pre registration?

[@Andy-gc4se]

Hi Benedict, Thanks for sharing your knowledge. I have a question as i am struggling to find the info i need as HMRC has very little info on this, i understand i can claim the VAT back up to 6 months on expenses from my vat reg date. i am a sole trader in the Vehicle glazing industry(mobile windscreen fitter), can i claim back the vat on direct expenses such as glass i buy for resale(which is most of my expenses) materials, consumables. and also the usual overheads like vehicle fuel, vehicle maintenance, tools, office stationary, laptops, software, etc as long as i have vat receipts. hope this makes sense, Thanks, Andy.

[@nathandixon3774]

Hi there, I own a building company and am about to go VAT registered. Can I claim back my builders merchants invoice’s for the last 4 years?

[@JM-uo5vp]

Can I claim VAT back on a gift... pre reg vat - I run a cleaning business and my partner brought me £6k worth of stuff to get me started.. but she paid for it not me? I have the invoice but its in her name

[@AccountingTeaBreak]

Good question! This link (www.gov.uk/vat-registration/purchases-made-before-registration) says they must have been purchased originally for the business purpose, but doesn't say they had to be bought by the business entity (which is you, legally, as the self employed person). So if all the gear was bought very definitely for your business then I would claim it in your position, yes. The "accountant-y" way of thinking of it is that your partner was acting as your agent: that's a person or business who can act on your behalf (buying things, selling things, signing contracts, handling cash and goods) but who never really owns the things they are dealing with, they are just serving the real business. Think of an estate agent: they never own the houses. Well your partner acted as an agent and bought £6k worth of stuff on behalf of your new self employed business. Then you said, "I owe you £6k" and she said, "Don't worry, my gift to you," and wiped out the debt. The second part there is a personal thing, not a business transaction, but HMRC usually recognises that couples share money and assets freely between them. I'm no lawyer, but that agent-then-gift way of looking at it is what it sounds like to me as an accountant. Good luck!

[@jakot90]

How about if a few years have passed and you never claimed your pre registration VAT? Is it any goods and services with VAT for the prior 6 months? For example I run an e-commerce business and the likely expenses would be postage cost, merchant fees, import vat.

[@AccountingTeaBreak]

I believe it is just the last six months unless you still have the thing you bought. So a computer, or stock from longer ago might be claimable. If you've been spending thousands and thousands then it will be worth going to an accountant and spending a little to get them to help you with claiming as much as possible without breaking the rules. (Not pitching my services there, I'm not a VAT reclaim specialist!) Good luck!

[@rehanmalik9794]

it will be more helpful if you explain with examples for better understanding.

[@AccountingTeaBreak]

I know what you mean: I try to keep it as short as possible here on youtube, but I'm working on a format where I can take up a bit more space and have full examples and demonstrations, to help people work through with their own figures. I'll post a video about it when I've got a little further along that road, maybe it will help you.