VAT you cannot reclaim
Some input tax is blocked, even with a VAT invoice. Learn the main cases and how that VAT becomes part of the cost in the books.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
Task 1Blocked input tax2 questions
Paying VAT does not always mean it can be claimed back. The law blocks some input tax, and some never qualifies.
- Entertaining customers, such as a meal for a client
- A car that is also available for private use
- Anything bought for private use and not for the business
- Any purchase with no valid VAT invoice to prove the VAT
A van, or anything else bought only for use in the business, is not blocked.
Task 2Where blocked VAT goes in the books4 questions
Task 3Part business, part private2 questions