Claim back VAT before you start trading

Often businesses will purchase alot of assets many months before they start trading. You can help your cash flow by registering for VAT immediately and claiming back the VAT on those assets rather than waiting until you actually start trading.

To do this, you should voluntarily register for VAT as an intending trader. You will also need to demonstrate your intention to HMRC using evidence such as:

- details of the assets purchased;
- details of patents applied for;
- copies of contracts agreed with customers;
- agreements to take on trading premises.

It doesn’t matter how long it might be before you will start trading.