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How do I reclaim VAT on my purchases?

Every quarter (every 3 months) you would fill in your VAT return form (online only) and submit this to HMRC. This must show all your output tax-this is the total VAT your company has charged your customers on products and services which you have provided. You also include the VAT charges you have incurred on purchases for your company such as supplies, equipment, stock etc, this is known as input tax.

HMRC will then review your VAT form and should your outputs exceed inputs, you must then pay the difference to the government, however if your inputs exceed the outputs your company is then entitled to a refund.

If on the Flat Rate Scheme you cannot reclaim on VAT unless you have done a bulk purchase, on one invoice/receipt which at a cost of £2,000 or more.