Posted: November 4, 2016
Some months back HMRC started looking closely at VAT that was able to be recovered prior to a business registering for VAT. It was always understood that at the time you registered you could look back up to 6 months for VAT on services, and up to 4 years on goods on hand. HMRC started trying to apportion and depreciate the amount that could be recovered. They have just released this
which states that VAT on services incurred leading up to registration, and assets on hand at the time of registration, is recoverable in full (some apportionment may be required for stock on hand). This confirms the position taken by the professional VAT advisors.