Old VAT

[Tom7000]

Monkey Boy got himself a van 5 years ago and reclaimed the vat. ( inside MB ltd - duly vat registered etc etc)
We are doing the accounts for the first time ( new client) and notice its actually an operating lease, with vat charged monthly.
The original vat reclaim 5 years ago is out of time and cant be paid back.
But the vat should be claimed on the operating lease payments as they are in time ( 5 year lease)
It doesn't seem fair, but can MB ltd now reclaim the vat and in effect get it twice?

[robbob]

Are you asking if its ok to claim the vat on the same thing twice? due to the fact that you initially made the claim waaaaaaay to early - so lets now ignore that claim thats previously been made and now claim for the same thing again.

I would say its a big fat NO - if you are i would recommend writing to the vat office to get their agreement in writing first - if it is ok with them please let us know

Practicably speaking the returns following the original return have gradually been self adjusting the difference down to "nil" ish so there has been in time adjustments made would you not agree?

I would say though if you have treated leasing payments as interest there will probably be an overall underclaim and you can claim for the vat on the payments not previously claimed (factoring in the original claim) that are still in time to claim which is probably the vat on all of the hp.