Hi,

If there was a small UK business - that was in a development phase (eg
was making purchases of computers etc - but not expecting to make
revenue for say 12m) - can the VAT on those purchases be reclaimed? If
so how and what are the constraints? Does the company need to be 'VAT
registered' to do this?

thanks - Delard

I believe that to claim back VAT you have to be VAT registered. There
are many other aspects to be considered which depend on your business
circumstances. Try this web site. It has an online guide.

When to register for VAT
http://www.businesslink.gov.uk/bdotg/action/layer;jsessionid=CwrLg8rLnwZCj52SMGjnHKTJhCPcCzcFcZJ9gC2WrZPTV8Lt4kbz!874086944!1123052299318?r.l2=1073859245&r.l1=1073858808&r.s=tl&topicId=1073863071

Guidance notes
http://www.hmce.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_Forms&propertyType=document&id=HMCE_CL_000086

?If: Your taxable supplies, distance sales, or acquisitions are not
expected to exceed £58,000 in the next 30 days, and have not exceeded
£58,000 in the past 12 months...
Then:
VAT registration is not necessary in these circumstances although
businesses can register for VAT on a voluntary basis to be able to
reclaim VAT on purchases.?

http://www.startinbusiness.co.uk/flowchart/8flowchart_vat.htm

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