PPRuNe Forums - View Single Post - Can you reclaim the VAT and/or tax on training costs?
Old 19th Mar 2017, 12:13
  #202 (permalink)  
pepsi_max2k
 
Join Date: Mar 2017
Location: Leeds
Posts: 1
Likes: 0
Received 0 Likes on 0 Posts
If any UK students are still thinking of reclaiming VAT, tl;dr: Don't.

If you misunderstand that, ask yourself if you've considered the following:

1. Have you read anything about VAT regulations: https://www.gov.uk/topic/business-tax/vat

2. Specifically, reclaiming VAT: https://www.gov.uk/reclaim-vat . The very first line of which is this
You can usually reclaim the VAT paid on goods and services purchased for use in your business.
3. "Business" is a legal definition. You might wanna make sure you meet this. https://www.gov.uk/set-up-business
https://www.gov.uk/working-for-yourself
Specifically, you must provide goods or services regularly for renumeration.

4. So, you're a business. In which case, which exact part of PPL(H) training relates to any of the goods or services you're selling? Oh wait, you're a PPL so can't actually "sell" anything, yet. But I'm sure you've already thought of a way of explaining this to a judge.

5. Two years later and you're a CPL(H) with a viable business and sales. You were aware of the time limits involved in reclaiming VAT right? https://www.gov.uk/vat-registration/...e-registration

6. You're aware of the specific scheme any goods or services were sold to you under? VAT Schemes Guide ? Alternative ways of accounting for tax

7. And retain invoices with required details? https://www.gov.uk/vat-record-keeping/vat-invoices

8. You know the VAT rate of these, and are sure they're not excempt? https://www.gov.uk/guidance/rates-of...s-and-services

9. Even then, in most cases, you simply can't reclaim VAT on training for yourself. https://www.gov.uk/hmrc-internal-man...anual/bim35660

Now of course, if you already own a busisness for which putting an employee through a (H) training course is a viable expenditure, by all means go ahead. But if you can afford to pay for other people to train whilst employing them, you wouldn't be reading this.
pepsi_max2k is offline