[JSMC]

was talking to someone today who is not vat registered but was telling me he claims vat back on his fuel n everything else he buys. I am under the impression if you are not VAT registered you deduct VAT from anything  you have bought with VAT on it n then include that in expenses.


example 5 workwear t shirts costing 50 quid + vat = £60. you can only claim back for the 50 quid?

[alfie11]

Im not vat reg so my accounts are simple , money in money out. You claim the 60 sheets because thats is what it costs you

[George P]

if you are not vat registed then you cannot claim vat back, you have to put the whole bill against your expenses, if you are vat registed you claim vat back from vat man and then put the rest against your expenses

[Pete Thompson]

He might mean he claims the total invoice amount, including vat as an expense against income tax, which is correct if not vat registered.  There's no 'claiming back' anything if you're not vat registered.

If you are vat registered, you actually do claim back the vat you've spent on business expenses.  That amount is deducted from your quarterly VAT bill.  If you have not received as much VAT from customers as you have spent, then HMRC will send you a cheque for the difference.   So in that sense, it really is claiming back.