Not VAT registered but invoices come with VAT

Support
1

My company is not VAT registered but I do have invoices from suppliers with VAT on them. When I come to input the invoice it doesn’t work out the VAT portion obviously. Do I just put the total invoice total into the equation including the VAT.

What happens if subsequently I go over the threshold and have to be VAT registered.

Many thanks

2

You cannot reclaim vat on inputs unless you are vat registered. If you go over limit or decide to register for vat then you can reclaim vat on your inputs provided its not flat rate scheme. Pre-registration vat recliam is not on all items, it has certain rules

3

Woule i then have to go through each invoice to calculate the VAT

4

At present you have to enter your expenses including vat

5

Yes i do enter my expenses including VAT but because I am not VAT registered it is just a total and no subtotal for VAT etc. If I come to be VAT registered in the future would I have to rework out the VAT portion by hand.

Thanks

6

NO, you can only reclaim pre-registration vat on certain items e.g current stock and fixed assets and certain services
this should help http://www.hmrc.gov.uk/vat/start/register/purchases-before.htm

7

thanks for your help

8

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