Reclaiming VAT in the UK

With decades of experience in helping businesses across all sectors with all aspects of reclaiming VAT, The VAT People is best placed to assist you in ensuring you are maximising VAT recovery on your operations within the UK.

We have helped hundreds of firms to decipher this complicated set of regulations and requirements, and we will provide the guidance you need in a manner that is both practical and easy to understand. 

Contact us today by calling 0333 3638 012 or complete an online enquiry form and we will be in touch at a time that is convenient for you.

How we can help you

Our knowledgeable VAT consultants are on hand to guide you through the process of reclaiming VAT on goods and services in the UK. 

Businesses can usually reclaim the VAT paid on goods and services purchased for use within the business. Those purchases made for personal or private use are only subject to VAT recovery on the business proportion of the transaction. 

For instance, regarding members of staff who work from home, if the office takes up 20% of the floor space in their property, they are entitled to reclaim 20% of the VAT on their utility bills. Records, as well as any relevant VAT invoices, must be kept to support any claims that are made. 

The VAT People is on hand to help businesses understand their obligations relating to VAT recovery, explaining which goods and services are eligible for recovery, as well as where partial exemption applies. 

The VAT People also provides assistance to businesses relating to reclaiming VAT on overseas expenditure. Find out more here.

VAT cannot be reclaimed on the following: 

  • Anything that is solely for private use
  • Goods and services used by your business to make VAT-exempt supplies
  • Business entertainment 
  • Goods sold to your business using one of the second-hand margin schemes 
  • Business assets transferred to you as a going concern
  • There are also special rules for reclaiming VAT on the following: 

Individual computers and single pieces of computer equipment costing £50,000 or more before VAT 
Aircraft, ships and boats costing £50,000 or more before VAT
Land and buildings costing £250,000 or more before VAT


Is there a time limit for claiming input tax?

UK VAT-registered businesses are able to recover input tax incurred in the course of making onward taxable supplies - this is done through the submission of VAT returns.

In the event VAT is not claimed in the proper period, a late claim can be made. There are various adjustment methods that are dependent on the value of input tax due to be reclaimed outside the correct period. There is a four-year time limit for correcting errors, such as in relation to the recovery of input tax.

Applying for VAT repayments can be a lengthy and arduous process, but it is your right to claim input VAT incurred in relation to the provision of taxable supplies. For more advice on this, call our free helpline or read this case study for context on a situation that might be similar to yours.

Contact us 

Speak to The VAT People today about how your business could benefit from reclaiming VAT on relevant goods and services. 

Contact us by calling 0333 3638 012 or complete an online enquiry form and we will be in touch at a time that is suitable for you. 

Useful Information

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