VAT Pre-Registration Expenses – What You Can Claim Back

If you’re about to register your business for VAT, here’s a little-known tip that can save you money: you may be able to reclaim VAT on certain costs you paid before you registered.

Many businesses miss out on this because they think VAT claims only start from their registration date. HMRC actually allows you to go back and reclaim on some expenses — as long as they meet the rules.

What counts as VAT pre-registration expenses?

HMRC splits this into two main categories:

✅ Goods (up to 4 years before registration)

You can reclaim VAT on goods bought for your business in the 4 years before registration, as long as:

• The goods are still in stock,
• Or they are still being used in your business at the date of registration.

Examples:

• Office equipment, laptops, furniture
• Tools, machinery, materials
• Stock you’re still holding

✅ Services (up to 6 months before registration)

You can reclaim VAT on services supplied in the 6 months before registration, as long as they relate to your business.

Examples:

• Accountancy fees
• Legal advice
• Rent, utilities, phone bills
• Marketing and advertising costs

What you can’t reclaim

• Goods or services used up before registration (e.g. petrol, stock already sold, utilities fully consumed).
• Expenses that were partly for private use.
• Anything without a proper VAT invoice.

Why this matters

Let’s say you spent £10,000 on stock in the 2 years before registering. If the invoices show £2,000 VAT, you can reclaim this on your first VAT return — a big cash boost when you’re starting out.

Key things to remember

• Keep all invoices and receipts — HMRC will want proof.
• Make sure the expenses are for business use.
• Claim them on your first VAT return.

💡 Tip: If you’re planning on registering for VAT soon, it’s worth reviewing your recent and past business costs so you don’t miss out.

👉 At Taxes Done Right, we’ll make sure you claim everything you’re entitled to and don’t pay a penny more VAT than necessary.

📞 Call 0161 710 1901 | ✉️ Email Tax@TaxesDoneRight.co.uk |