Questions and Answers
Can I claim back any input VAT?
I am on the Flat Rate Scheme for VAT, is it correct that I cannot claim back any input VAT on my expenses?
Under the standard scheme for VAT you pay output VAT on your taxable sales and reclaim input VAT on your expenses, subject to any restrictions.
The Flat Rate Scheme is where you apply a fixed flat rate percentage to your gross sales and this is the amount of VAT that you pay to HMRC. The percentage you use will depend on what sector your business is in.
Under the Flat Rate Scheme, you do not reclaim back input VAT on any of your expenses. The only exception to this is if you spend £2,000 or more, including VAT on capital goods in one single transaction. In this situation you would include the input VAT in Box 4 on your VAT Return to be able to reclaim it. More information can be found here. The rules for reclaiming pre-registration input VAT still apply to those businesses on the flat rate scheme.
If you would like any advice or assistance in this area please contact us on 01942 938 212 or use our simple online contact form to arrange a free initial consultation.
Date published 22 Nov 2021 | Last updated 20 Mar 2024
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
Local business focus
We specialise in supporting independent businesses and work with 100,000 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
Come and meet us
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.
Switching is simple
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.