VAT Reclaiming

TheTallGuy

Member
Location
Cambridgeshire
For a farming business am I allowed to reclaim VAT on purchases of any cleaning products like washing powder,fairy liquid etc used in cleaning workwear?
Yes, but only for the proportion of the purchase that is for business purposes - if you buy a pack of 10 washing pods & only 2 are used for washing workwear & the rest for domestic use then you should only claim 20% of the VAT.
 
If I'm out anywhere, and buy anything for the farm where I don't have an account, i put it on the credit card, if I buy anything for personal, it's on my personal debit card. End of the month it's one bank payment to pay off the credit card for maybe a dozen + different business things. So when doing the grocery shopping every now and then I will pay for washing powder, tea, coffee, biscuits etc on the credit card and the rest of the shopping on the debit , then the stuff for business goes through the books.
Accountant seems happy with that.
 
If I'm out anywhere, and buy anything for the farm where I don't have an account, i put it on the credit card, if I buy anything for personal, it's on my personal debit card. End of the month it's one bank payment to pay off the credit card for maybe a dozen + different business things. So when doing the grocery shopping every now and then I will pay for washing powder, tea, coffee, biscuits etc on the credit card and the rest of the shopping on the debit , then the stuff for business goes through the books.
Accountant seems happy with that.
That sounds a really good idea..What exactly do you claim vat back as a business expense I noticed you said tea coffee biscuits is that allowed and vatable?
 

Bald n Grumpy

Member
Livestock Farmer
That sounds a really good idea..What exactly do you claim vat back as a business expense I noticed you said tea coffee biscuits is that allowed and vatable?
Wouldn't think tea coffee should be a problem if it's for staff or perhaps a potential business deal , called corporate entertainment in other industries.
Claim a third of electric, phone/ internet here as we don't have separate office for farm so everything is in the house, accountant suggested we should do it
 
That sounds a really good idea..What exactly do you claim vat back as a business expense I noticed you said tea coffee biscuits is that allowed and vatable?
Anything that you use for the business.

I remember Dad going to a vat seminar years ago, one thing that suck in my mind when he came back was, if you and your employee went on a business trip, to the mart, to view a new machine etc and you had lunch somewhere, you could claim the vat back on your employees expenses, but not your own. Might not be much , but the end of the year it might amount to something a little more substantial
 
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Exfarmer

Member
Location
Bury St Edmunds
I would suggest that the best thing is to occasiuonally put some cleaning materials down to the business. Say twice a year purchasing a reasonable amount.
I used to buy some out of the local farm co op occasionally , until I realised it was cheaper to buy from Tesco’s and not faff about with the VAT . It is legit as well to purchase a few packs of tea and coffee etc as well as the biscuits , just in case of a VAT inspection ;)
 

Exfarmer

Member
Location
Bury St Edmunds
Are you washing all your work clothes with said powder or just the ones that you can put through the business ie protective clothing, overalls etc or branded clothing. Normal things such as jeans shirts etc you cannot claim vat back on?
I trhink it would be perfectly reasonable to say that clothing which is contaminated with grease, cow muck, etc cannot go in with everyday wash, thus a genuine claim
 

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