VAT

6. Reclaiming VAT on Purchases

6.1 To claim back input tax (the VAT you pay on purchases), you must keep all the VAT invoices for the purchases you make.

6.2 If you work from home, you can claim back a proportion of VAT on certain expenditure.

6.3 If you reclaim VAT on fuel used by cars, extra VAT will usually be payable.

• VAT is payable (on 'scale charges') if some fuel is provided free, or at less than cost, and is used for private journeys.

6.4 Input tax is not normally reclaimable on certain types of purchase, such as company cars used for private purposes.

6.5 If you make only exempt supplies, you are not entitled to register for VAT and cannot reclaim input tax. If you make exempt and taxable supplies, you should be entitled to VAT registration and can recover part of your input tax. Special rules apply.