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Bookkeeping and Accounting Services In Shropshire

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VAT Refund Rules

VAT Refund rules by HMRC have changed.  

Rules about reclaiming VAT following registration have been changed by HMRC following its re-interpretation of the procedures covering VAT pay-outs.  As a result, some firms could lose money that they expected would be refunded to them.  Previously, for a period of more than 40 years, the rules allowed traders that already held stock and assets prior to registration to reclaim the full amount of VAT paid in respect of those items retrospectively.  However, VAT can now only be reclaimed on a pro-rata basis to cover the period after the VAT registration date.