Accountants Debate: Can a New Business on FRS Reclaim Pre-Registration Expenses <£2k

[MikhailCompo]

Can a new business, whose VAT reg date coincides with the FRS reg date, claim pre-registration expenses that are under £2k?

My accountants account manager (i.e. not an accountant) says no, as I joined the FRS, so only for >£2k expenses. An accountant who has responded to a support request from an online accounting system (after I queried why the generated VAT return figures differed from my accountants first VAT return) says yes they can, even those under £2k, due to the fact that all start-ups would wait to join the FRS otherwise.

What do people think?

[Louisa@AardvarkAccounting]

Yes - you can claim pre-registration expenses VAT on your first VAT return, even if you are on the flat rate scheme from your date of your VAT registration.

The reclaim can include purchases of services (for up to 6 months prior to reg. date) and goods (for up to 4 years prior to reg. date), if they're still held at the date of registration.

[Darren at Fox-Bartfield]

VAT

Agree with Louisa, link here as well.

[Michael at BI Accountancy]

An accountant who has responded to a support request from an online accounting system (after I queried why the generated VAT return figures differed from my accountants first VAT return) says yes they can, even those under £2k, due to the fact that all start-ups would wait to join the FRS otherwise.

FreeAgent by any chance?

Yes as Louisa and Darren have said you can reclaim VAT on pre-registration goods and services. (This is regardless of any scheme you have entered into).

Heres a link to back up Louisa's dates https://www.gov.uk/vat-registration/...e-registration

[northernladuk]

I can confirm the responses from my team above are correct.

[MikhailCompo]

FreeAgent by any chance?

Hi Michael

Can I ask why you have said this?

[MikhailCompo]

I can confirm the responses from my team above are correct.

Do you guys really work in the same team/company, or is this comment just in jest?

[northernladuk]

Do you guys really work in the same team/company, or is this comment just in jest?

It's just in jest. The above posters are professionals hence their company in their username. All are valued contributors to the forum and give their valuable time for free.

I'm just a little twerp with nothing better to do so usually best to ignore me.

HTH

[Darren at Fox-Bartfield]

I'm just a little twerp with nothing better to do so usually best to ignore me.

HTH

Wouldn't quite go that far!

[northernladuk]

Wouldn't quite go that far!

Hmm. Yes you are right. I have something to do and am being paid handsomely for it so could do with getting on with it at some point