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Claiming back VAT

Can I claim the VAT back on purchases made before my company formation?

Yes, you would be entitled to claim back the VAT on any business assets you purchased that you will continue to use in the business within the last four years (i.e prior to becoming VAT registered).

  • Four years for fixed assets & six months for services.

If you're a new limited company you must have a valid VAT invoice or receipt.

Create new expenses with the date being the date of the first day of your current accounting year and charged to the relevant expense account with the payment type selected as 'Paid by Director personally'.

If you were previously a sole trader, and the costs were incurred before you began trading as a limited company you may wish to consult an accountant so you can claim the appropriate tax relief.

If your previous entity was that of a sole trader, please do not enter the company formation costs into your Crunch account but instead contact us with details of the expenses so that we can incorporate these into your next VAT return (if applicable).

What if I am due a VAT refund?

When you receive a rebate from HMRC you will need to record it in Crunch. To do this go to 'Company Tax > VAT Returns', then use the 'Options' for that VAT return select 'Record VAT rebate'

Last Updated: 21 Nov 2019 08:50AM GMT
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