It is often good to refresh our minds with regard the basics of VAT, as often the simplest error is what can catch most people out. For example, VAT can only be reclaimed on purchases related to business activity, so a hot tub for the "home office" is not really for "business use" unless your business is selling hot tubs perhaps.
A client (farming) once tried to argue they reclaimed the input tax on a hot tub because it relaxed their muscles after the stress and effort of running the business, but HMRC were not convinced. This is why revisiting the basics of business expenses, business entertaining and the basic rules is worthwhile.
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Don’t leave this to chance, so speak to your advisors or speak to us, our VAT advice is not as expensive as you think. VAT.tamworth@hwca.com
