help on vat return

[Parrot of Doom]

I'm due a cheque from the VATman for about £947 for reclaiming VAT on tangible goods bought prior to registration - this hasn't arrived since the last return.

Should I just deduct this £947 from the VAT payable section of my next VAT return?

[B17NNS]

where did you buy the vat from?

have you spoken to them to discuss there returns policy?

[JonRB]

Depends on whether you're using accrual or cash accounting. If the latter and the cheque has not arrived then it does not yet exist (as far as your accounts are concerned) until you have paid it in. If the former then I don't know.

Edit: B17NNS - what exactly are you on?

>> Edited by JonRB on Wednesday 4th January 16:06

[Parrot of Doom]

Nope, didn't think to until I started doing the return.

Since they have it, and haven't sent me a cheque (which obviously I haven't cashed!) I think I'll send the form in, with the corrected figure on the bottom (like the last one). By the next return it will balance itself out anyway, its only a small amount.

[viggen114]

You cannot claim back before registration date.
You didn't charge it so you cannot claim it...

[Liszt]

viggen114 said:

You cannot claim back before registration date. You didn't charge it so you cannot claim it...

I was under the impressiont that you could if they were for the purpose of the business.

Such as accountants fees for setting up company etc

[B17NNS]

JonRB said:

B17NNS - what exactly are you on?

he wants to return a VAT?

[JonRB]

Liszt said:

viggen114 said: You cannot claim back before registration date. You didn't charge it so you cannot claim it... I was under the impressiont that you could if they were for the purpose of the business. Such as accountants fees for setting up company etc

Yes, that's my understanding too. On all purchases where you have a VAT receipt you can claim the VAT back for quite a way back.

However, I seem to remember that there is a complication if you have income for the same period. I think you might have to give up the VAT on it or something, however I'll leave that to one of our resident accountants to explain as I'm a bit hazy on the subject.

[JonRB]

B17NNS said:

JonRB said: B17NNS - what exactly are you on? he wants to return a VAT?

Well, there goes another rib.

[tinman0]

viggen114 said:

You cannot claim back before registration date. You didn't charge it so you cannot claim it...

not sure actually. i think there is a timeframe to make back date your registration for the purposes of reclaiming vat on purchases.

i got caught out with a vat question the other week on PH (by eric mc i think) and went and read up on it all again.

[Parrot of Doom]

You can reclaim VAT on items which you still have, that were bought before registration (and vat applied) up to a date limit (which I can't remember)

For instance

Computers, televisions, furniture, tools, etc

You can't claim back on fuel, food, consumables, etc.

>> Edited by Parrot of Doom on Wednesday 4th January 16:25

[smartie]

you can reclaim the vat on anything (stock or assets) that you still have in your possesion at the date of registration. Equally, you must then chrage VAT on anything you sell from then on.

If you sent in a VAT return showing a refund due then they should have repaid this, or queried it. Generally VAT refunds are paid directly into the bank account you gave them details of when you registered; they will only issue cheques if they have no alternative.

Why not ring your local VAT office? (phone number on your VAT return)

[gopher]

POD, have you checked your bank account? C&E don't like sending cheques if they can help it

edit to add:

If it's not there, ring the helpline number on the return.

>> Edited by gopher on Wednesday 4th January 16:31

edited to stop me seeming like an American

>> Edited by gopher on Wednesday 4th January 17:05

[Parrot of Doom]

Feck, I sent it off before I thought of that.

Oh well, I'll phone the bank tomorrow (accounts are with my accountant for tax return) and see, if they have paid me some money I'll phone them up and ask what to do.

[steveherb]

I can confirm that C&E pay direct into bank account that was notified at time of VAT registration. Unfortunately, I know this because it has just cost a good friend of mine somewhere near £90,000. He closed the account years ago, bank reallocated to someone else, along comes C&E and started paying money into the account. New account holder - apparently from somewhere 'out of town' if you get my drift - starting shipping money back to his base. Case has just finished in court, dont know what the chappie has been sentenced to yet, but his defence was, he thought it was child allowance! Judge has delivered major bo77ocking to both C&E and the bank concerned. No help to my mate though, he's still 90 grand down.

[Eric Mc]

Smartie is correct. You can claim back the Input VAT on goods and assets purchaed prior to your VAT registration if the goods and assets are still in use or in stock in your business at the date of VAT registration. Obviously, if any of those goods or assets are subsequently sold (or taken by the proprietor for private useage), Output VAT needs to declared on the "Sale".

If you made a claim for the Input VAT on pre-registration items, you could have done that as part of a normal VAT return. If this resulted in a VAT refund due to you, then it should have come back to you in the normal way (VAT refunds are not that unusual).

[juliann]

I'm a nett reclaimant of VAT on a monthly return basis. The cheques are usually very prompt so it is worth ringing them and seeing the status of your reclaim. I also reclaimed pre-registration VAT and this was not an issue.

[apguy]

And for flips sake don't do what I did....

- 4 years ago I submitted a VAT return with a -ve amount, meaning I expected a VAT refund cheque
- 3 months later, no cheque arrived so I subtracted the amount from the next VAT return
- Lo and behold the cheque arrives 2 weeks later and I "forgot" that I'd now had the refund twice and I promptly banked the cheque.

4 years on I had a VAT inspection (not an investigation, thats something totally evil) and the very astute Customs and Excise lady spotted this descrepancy. Net result was me writing a cheque there and then for the over payment. No fine or nasty stuff, but I imagine if it had been for a large amount the scene may have been different.