New Business VAT Return - Can I Claim These?

[Q582]

Hi,

I am a UK based business and I have been in business for only 8 months. I am about to return my second VAT return. My returns are quarterley and I have a few questions if anyone can answer them please.

I work from home using a room for an office and the double garage to prepare and store equipment. I also have clients visit me at home.

In my VAT return, can I claim any VAT from the following:

Landline Telephone (Used for Business and Personal)
Heating (Used for Business and Personal)
Electricity (Used for Business and Personal)

Also, I have just purchased a new suite for the main room. Beacause of the client visits, it is used for both personal and business use.

Can I claim anything against the purchase of the suite?

If I had company premises, I would assume that it could be classed as fixtures and fitting and that I could use the purchase of the suite in my tax return!

Please advise.

Q582

[paultaylor@vatease.c]

If there is a genuine business use for these purchases you will be entitled to recover the VAT incurred. Where there is a mixture of business and personal use you will be expected to apportion the input VAT claim between the 2.

In the case of items that would normally be personal expenditure (as all of these are) you should be prepared to prove the business use in the event of a visit by a Customs officer.

Regards

Paul Taylor
http://www.vatease.co.uk/