Cookies are small text files that are stored on your computer when you visit a website. They are mainly used as a way of improving the website functionalities or to provide more advanced statistical data.
VAT on Pre-Incorporation Expenditure
Newsletter issue - July 08.
As you prepare to set up your company you may buy assets ready for that company to use, or pay for services such as legal or accountancy, that relate to the new business. You can reclaim the VAT incurred on those goods and services you purchased personally for the company if all of the following conditions apply:
1. You become a director, company secretary or employee of the company, and the company fully reimburses you for the goods and services you bought on its behalf.
2. You were not VAT registered when you made the purchases and have not used those items for any other purpose.
3. You have not reclaimed the VAT on those purchases through another business.
4. The company must reclaim the VAT in its first VAT return after becoming VAT registered.
There are also some restrictions on the goods and services on which the VAT can be reclaimed.
Goods must be:
- held at the date the company becomes VAT registered;
- purchased within 3 years of the date of that VAT registration;
- used by the company for its trade.
Services must be:
- purchased for the purposes of the company's business;
- acquired within 6 months of the date the company becomes VAT registered;
- not recharged on to a customer before the company became VAT registered.
JOIN OUR NEWSLETTER
Sign up with your email to get updates about
resources releases, tax news and special offers.
- GET A FIXED QUOTE
- BUSINESS ADVICE
- PERSONALISED SERVICE
Saving money on your Mileage and Tax Bill
Are you like many of our clients, somewhat struggling at keeping track of your mileage to offset... Read More
Posted on Wed, 19 Aug 2015
TWITTER
Tweets by @OWSupportOne of the headline areas of tax reform in the Autumn Budget surrounded Capital Gains Tax. With rates altered by the Chancellor, it was one of the...
Tax rules for individuals and companies using alternative finance are to change. The Government released plans for reform on the day of the Autumn...
With Christmas soon arriving, you may be planning a festive party for your employees or on behalf of the company you work for....
Plans to change tax compliance rules for charities are moving forward, as the new Government picks up proposals for reform to prevent misuse....
Q: I own a second home worth £400,000, which I bought for £250,000 and I have shares valued at £50,000, which I purchased for...
19 December - For employers operating PAYE, this is the deadline to send an Employer Payment Summary (EPS) to claim any reduction on what you’ll...