Vat on expenses

mondeo

Hi,

I am not registered for Vat, however on calculating my expenses I am looking at my expenses receipts which all include vat on them, web hosting, advertising etc. On calculating my expenses do I put in my figures excluding the vat? As an example Web hosting exclusive of vat is 49.95 so I can only claim that figure? And not the full price of 60.74 which includes vat?

Thanks

GeorgeTaylor

Do you mean when including them on your tax return? If you're not registered for VAT, you include the amount inclusive of VAT.

mondeo

GeorgeTaylor wrote: »

Do you mean when including them on your tax return? If you're not registered for VAT, you include the amount inclusive of VAT.

Yep when including them on my tax return, so I just add up all my expenses inclusive of the vat so.

I was under the impression I Could not claim the vat on expenses as I'm not vat registered?

GeorgeTaylor

No, I'd say some wires got crossed, you can claim the total expense inclusive of VAT on your income tax return.

mondeo

GeorgeTaylor wrote: »

No, I'd say some wires got crossed, you can claim the total expense inclusive of VAT on your income tax return.

Thanks your very helpful

christina3

I am planning to start a business & planning for vat registration, on calculatting my expenses like phone bill, esb bill etc, how i record in my account. means inclusive of vat amount or exclusive of vat amount, which one

help me
thanks

TiGeR KiNgS

christina3 wrote: »

I am planning to start a business & planning for vat registration, on calculatting my expenses like phone bill, esb bill etc, how i record in my account. means inclusive of vat amount or exclusive of vat amount, which one

help me
thanks

FYI, This is an old thread,

Accounting software will do the VAT bookkeeping for you.
My advice is to see an accountant as you will be VAT registering.