Vat claims

[Cassie]

Hi can anyone tell me if I'm claiming back too much VAT every quarter on purchases made for the Ltd company. The vAT I claim far exceeds the VAT payable as the sales are very low each month and the VAT claimed are genuine running costs of the company.

[JamJarST]

Hi can anyone tell me if I'm claiming back too much VAT every quarter on purchases made for the Ltd company. The vAT I claim far exceeds the VAT payable as the sales are very low each month and the VAT claimed are genuine running costs of the company.

How do you expect to get decent advice with such wooly information. Presumably you are runing at a loss, why is that?

[Clare@InTouch]

There's nothing wrong with getting refunds each quarter as long as your claims are genuine. Keep VAT receipts and copies of your calculations so you can prove you're OK should HMRC come knocking.

If in doubt, ask your accountant :-)

[Jeremiah@RHJAccountants]

WSS.

Your information is very vague and you would be better suited to speaking to your accountant or get one as they could advise you a lot better if they have the correct information.

[Nixon Williams]

Hi can anyone tell me if I'm claiming back too much VAT every quarter on purchases made for the Ltd company. The vAT I claim far exceeds the VAT payable as the sales are very low each month and the VAT claimed are genuine running costs of the company.

It is possible that you are calculating this correctly, however if you are then a bigger issue is the viability of the company. Generally, if you are paying out more than you are bringing in, then you can only continue to do this if there are the cash reserves to do so, perhaps the time has come to re-visit your business plan/model?

Alan

[Sockpuppet]

With the carousel frauds going on if I was submitting negative receipts often I would expect a visit from Hector very soon.

[malvolio]

Didn't get a visit but during a partly deliberate extended bench period I did get a polite letter warning me that if I had no income I should de-register for VAT. Luckily that cams about a week before I get back to work.

I think you get three quearters of negative returns before they take notice, but take notice they will.

[PAH]

For reasons highlighted above I tend to hold back any reclaims between contracts to avoid negative returns.

You can reclaim VAT going back quite a while (3 or 4 years IIRC) so no rush unless you're that short of cash.

Not that I'm doing anything dodgy, just don't want the hassle of VAT inspections, especially while working away which would be a pain if they needed me at home while they sifted through the paperwork.