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Reclaiming VAT on purchases and services

 
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May_8



Joined: 30 Jan 2018
Posts: 11

PostPosted: Fri Aug 06, 2021 10:42 am    Post subject: Reclaiming VAT on purchases and services Reply with quote

Hello,

I am setting up a small, one bed holiday cottage for full time, commercial use. Please can someone tell me if you can reclaim the VAT paid on goods and services purchased for use in your holiday let business? For example, Plus Net seem happy to provide me with either ordinary or business broadband, informing me the only real difference is how I want to be invoiced i.e whether I want be able to claim the VAT back.

Advice much appreciated!

Many thanks,

May
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Cymraes



Joined: 07 Jul 2015
Posts: 527
Location: North Wales

PostPosted: Fri Aug 06, 2021 11:21 am    Post subject: Reply with quote

You can only claim back VAT if you are VAT registered.

You need to register if your turnover is 85K. You can register voluntarily but then you'd need to add VAT to your prices and complete regular VAT returns

If this is your only business the downsides completely outweigh the tiny VAT savings you'd make. Having to charge VAT on your prices will make you much more expensive for guests than those of us who take great care not to have to VAT register.

If you have other business interests it can get complicated so in that case you should take an accountants advice.
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May_8



Joined: 30 Jan 2018
Posts: 11

PostPosted: Fri Aug 06, 2021 12:57 pm    Post subject: Reply with quote

Many thanks for your reply Cymraes, this is incredibly helpful, and very much appreciated.
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Drax



Joined: 21 Jul 2016
Posts: 167
Location: Yorkshire Dales

PostPosted: Fri Aug 06, 2021 1:12 pm    Post subject: Reply with quote

We reclaimed VAT back on materials used when we renovated our cottage.
Though the criteria by HMRC for reclaiming VAT was that the property had to have been unoccupied for 10 years or more.
Also the cottage was for our own use and not for a holiday let.
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J B



Joined: 09 Oct 2007
Posts: 111
Location: We live in England and have rental properties in N Wales and Paphos, Cyprus

PostPosted: Sat Aug 07, 2021 9:17 am    Post subject: Reply with quote

Cymraes wrote:
You can only claim back VAT if you are VAT registered.

You need to register if your turnover is 85K. You can register voluntarily but then you'd need to add VAT to your prices and complete regular VAT returns

If this is your only business the downsides completely outweigh the tiny VAT savings you'd make. Having to charge VAT on your prices will make you much more expensive for guests than those of us who take great care not to have to VAT register.

If you have other business interests it can get complicated so in that case you should take an accountants advice.


All excellent advice - we have the T Shirt!
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J B
www.jamesbourne.co.uk
http://www.holidaylettings.co.uk/rentals/tala/199631
https://www.sts-holidays.co.uk/property.html?id=4036_ST
https://www.sts-holidays.co.uk/property.html?id=4037_ST
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May_8



Joined: 30 Jan 2018
Posts: 11

PostPosted: Sun Aug 08, 2021 8:16 am    Post subject: Reply with quote

Thanks guys!
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