VAT during Training
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Join Date: Nov 2004
Location: London
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VAT during Training
Hi,
I was told, somewhat anecdotally it has to be said, that it is possible to register yourself as a plc. The advantage of this is that you can then claim back VAT from training expenses.
I'm not accountant - can this idea fly?
I was told, somewhat anecdotally it has to be said, that it is possible to register yourself as a plc. The advantage of this is that you can then claim back VAT from training expenses.
I'm not accountant - can this idea fly?
Join Date: Nov 1999
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I suspect that rather than a PLC ( which normally requires at least £50,000 of issued shares and may be listed on the London stock exchange), you mean setting up a business and registering for VAT.
In any event you can only claim back the input element of VAT from the output element of the VAT you are then required to collect on behalf of Customs & Excise. In essence you become an unpaid tax collector albeit with the benefit of being able to claim back the VAT that you incur in the production of the goods or services you are selling. However you cannot claim back VAT for items that are not in any way associated with the business. If the training costs are a legitimate input part of the business they may be allowable, however C & E are likely to look long and hard at such a claim.
So the short answer is No ! there may be rare circumstances when the VAT would legitimetaly constitute an input to a business, but for most people it would definetaly not fly as far as Customs & excise were concerned.
In any event you can only claim back the input element of VAT from the output element of the VAT you are then required to collect on behalf of Customs & Excise. In essence you become an unpaid tax collector albeit with the benefit of being able to claim back the VAT that you incur in the production of the goods or services you are selling. However you cannot claim back VAT for items that are not in any way associated with the business. If the training costs are a legitimate input part of the business they may be allowable, however C & E are likely to look long and hard at such a claim.
So the short answer is No ! there may be rare circumstances when the VAT would legitimetaly constitute an input to a business, but for most people it would definetaly not fly as far as Customs & excise were concerned.
