I have a query, that unfortunately I cant get a satisfactoy answer too (yet!)
I am planning on setting up a new travel company. Very basic, i have a truck that I drive around Africa on overland trips. Driving from point a to point b, stopping in places to go hilking, shopping etc
I am going to register as a UK LTD company in London at Companies house.
Expected revenue per annum will be in excess of the VAT threshold (currently £67,000).
Now, my question is as follows.
As ALL of my trips will take place in Africa (i.e. outside of the EU) I understand that they will be exempt from me charging VAT. The price I charge the passenger is the price I keep as pre-tax revenue. No VAT to be added and therefore given to the VATman.
Okay. But as I am spending lots of money in the UK on buying parts for my truck (mechanical parts, re-furbing the body, camping equipment etc), I will be paying VAT on my purchases. Potentially as much as 6,000pounds in VAT.
My question is......can I reclaim the VAT I have paid out on all my purchases (which are all part of a 'fixed asset i.e. the truck), even if I am not charging VAT on my sales?
Some people say yes you can under the TOMS scheme, and I know a company that tell me this is the case.
Can anybody clarify that for me. Im trying to get through to HMRC vat helpline but ive given up all the operaters are always busy!
I would sure appreciate any advice people can give me. If I cant reclaim all the VAT I make on my piurchases my business plan is a bit buggered as it makes the budget too tight for comfort.
Thank you in advance.