Where and how to record reclaimed backdated VAT

Hello, I became a VAT-registered as a sole trader and I am recording my revenue and expenses without including VAT for either (as I read on HMRC website thats one of the ways to do it). However, after becoming VAT registered I took the advantage of reclaiming VAT for the qualifying business expenses from the previous 4 years and I was wondering if and how that reclaimed VAT amount should be declared somewhere since obviously those expenses were initially recorded including the VAT when I wasn't VAT-registered. Thanks! Kris

 

Hi. If you are now VAT registered and reclaiming VAT on your pre registration costs then this would need to be recorded on your VAT return as a purchase. You would record the net amount in box 7 and the VAT element in box 1. Please see below : How to fill in and submit your VAT Return (VAT Notice 700/12)  . Thank you .