VAT input tax not deductible

VAT input tax paid on some of your business expenses are not deductible under the VAT law in the United Kingdom. Thus, they cannot be reclaimed in your VAT return. VAT stands for Value added tax and is usually charged to consumers.

VAT input tax on motor vehicles

A VAT for purchase of your motor car cannot be reclaimed. However, VAT on purchase of your van or other vehicles solely use for your business activities are reclaimable. Normally, vehicle solely for business use would have carry some sort of advertising stickers of your company names, products or services on it.

Entertaining expenses and second hand goods

Other company expenses which VAT paid are not reclaimable is your business entertaining expenses. Another one is the goods bought under the second-hand scheme.

Accordingly, VAT not deductible expenses do not need to separate the VAT element from the total invoice. You treat the total payment including VAT as an expense of your company in your VAT return.

Companies House filings

If your company is registered with Companies House, you must deliver company accounts and confirmation statement to them every year.

Lastly, if you require help with your VAT returns, company accounts and confirmation statement preparation and submission to HMRC and Companies House, our accountants can help you to take care of them.

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