'VAT Pre-Registration Claim - can I claim VAT on items before I incorporated my limited company?'

Pre-incorporation

When you register for VAT, you can usually perform a pre-registration claim for your input VAT going back 6 months on services and 4 years on goods. This can prove helpful to businesses registering for VAT by providing a much needed cashflow boost. However, it can be confusing for business making this pre-registration claim when they previously trade as an unincorporated sole trader (aka self-employed business) before incorporating as a limited company.

Provided you were operating the same trade pre & post the incorporation of your business as a limited company, the 6 months on services and 4 years on goods rule for claiming input VAT still applies to costs incurred prior to the incorporation date of the limited company. For this to be the case, the following must be true:

• Pre-incorporation products or services must directly relate to the ongoing trade of business.
• the goods and services must be used to produce taxable supplies

Get in contact for expert VAT advice: https://www.spondoo.co.uk/contact/.