We have had some great successes for a lot of clients who weren’t registered for VAT but carrying significant VAT costs on projects that would lead to sales in the future. HMRC can be very awkward about letting a business in development become VAT registered ahead of making sales so they are blocked from claiming VAT back.
HMRC are wrong to do so but they keep sending people away.
This is something we keep having to do because HMRC keep applying the wrong rules. It is always a great feeling to secure a new VAT registration for an organisation that has been incurring costs plus VAT over a period of years. Not being able to reclaim any VAT because HMRC said they weren’t entitled to be registered or make VAT claims until they were closer to making sales puts a developing business at a disadvantage – and that just is not fair.
Given that bigger development projects can take a long time to come through to breaking ground, HMRC’s resistant attitude leaves some organisations carrying an additional cost by way of blocked VAT that they should have been able to claim on an ongoing basis. As in VAT registration entitlement case study we can typically secure successful back-claims of fairly substantial sums, which is always very satisfying.
Our role is to help you understand how the VAT rules work for you so that you bear the lowest possible VAT costs. There are all sorts of reliefs and rules that are both complicated and frequently misunderstood – including by HMRC!! Read about VAT registration entitlement case study where we were able to get the best and fairest answer.
If you’re ever not sure about VAT related then please give us a call. Remember sooner is always better.