Charging and Reclaiming VAT

If you've supplied goods or services to a customer who hasn't paid you, you can reclaim the VAT you've already paid to HMRC through bad debt relief. You must wait at least 6 months after payment was due before making a claim, and you'll need to meet specific conditions and kee...

4 min read

When you're VAT-registered, you need to charge VAT on most of what you sell (known as output tax) and you can reclaim VAT on most of what you buy for your business (known as input tax). The difference between these two amounts is what you pay to HMRC, or what HMRC refunds to y...

8 min read

If you're VAT registered, getting your invoices right matters. The invoices you issue must contain specific information so your customers can reclaim VAT, and the invoices you receive must meet HMRC's requirements before you can reclaim input tax. This guide explains what must...

8 min read

When customers pay for your goods or services through deposits, instalments, or credit, you need to know when the VAT becomes due and how to report it correctly. The timing of when you account for VAT depends on the type of payment arrangement you use — and getting this right...

5 min read

If you're VAT-registered and pass costs on to your customers, how you treat these for VAT depends on whether they count as expenses (recharges) or disbursements. Understanding the difference is crucial: you must charge VAT on recharges but not on disbursements, and this affect...

4 min read

When you're VAT-registered and use business goods or services for private purposes, or supply them to yourself, you may need to account for VAT even though no sale has taken place. This includes taking items from stock for personal use, lending business equipment to employees, or using...

6 min read

If you're VAT-registered, you must keep accurate records of your business transactions and hold onto them for the right length of time. These records help you calculate the VAT you owe or can reclaim, and must be available when HMRC visits. This guide explains exactly what rec...

5 min read