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Posted 14 days ago by Astrojon
Hello, I am struggling to get a definative answer over issues I am having surrounding going vat registered. I have not enough income currently to afford the services of an accountant to get help at this stage. I am a new startup and I have no income from the business just startup expenses, however I have been asked to be vat registered to get access to work and be seen as more credible and to get access to trade prices. My first submission to HMRC will likely be a claim back of vat I have paid on startup and my van and will contain no collected vat. If i do this, will I be threatened or face any sort of trouble? Kind regards.
Posted 8 days ago by HMRC Admin 8 Response
Hi,
If you have an intention to trade and you can show evidence for this then you have an entitlement to register for VAT.
You are allowed to reclaim VAT on set up costs prior to registering for VAT and so we would expect that your first VAT return would be a repayment.
Please see below:
Input tax when VAT paid on goods and services received before VAT registration
Working out whether you need to register
Thank you.

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