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Posted Sat, 07 Jan 2023 16:23:01 GMT by James
Hi there, I wanted to clarify how claiming historic VAT repayments on my first VAT return interacts with claiming capital allowances on my self assessment.  Situation:  -I began my sole trader business in 21/22 tax year, and registered for VAT in Nov 22. My first VAT return is due 7th March 23 for period Nov 22-Jan 23.  - I have some historic VAT costs going back to Oct 21 that I believe I am eligible to claim back in my first VAT return - I am also simultaneously filling in my first self assessment form for the 21-22 tax year, and can claim capital allowances for the items that I paid VAT on historically and are still being used in my business As I understand it, I have 2 options: 1. If I use the higher (VAT inclusive) amount for capital allowance claims in my self assessment form (due by 31 Jan), then I won't be able to claim back historic VAT when I submit my first VAT claim (due 7th March) 2. If I use the lower (VAT excluded) amount for capital allowance claim in my self assessment form, then I would be able to claim back historic VAT when I submit my first VAT claim  Is this correct?
Posted Mon, 09 Jan 2023 15:01:59 GMT by HMRC Admin 17

We can't advise on the Self Assessment part of your question.

However for VAT purposes you are entitled to recover VAT incurred prior to your VAT registration as long as the conditions are met.

Please see the following guidance:

VAT guide (VAT Notice 700)   .

Thank you.


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