How do I reclaim VAT on purchases made before registration?

You can reclaim VAT on goods bought up to four years before registration, provided you still hold them or they were used to make goods you still hold, and on services received up to six months before registration, if they relate to taxable business activity.

Goods include stock, equipment, computers and tools. The four year limit applies and the goods must still be on hand at registration, or incorporated into goods still on hand. Items already sold or consumed cannot be reclaimed.

Services include accountancy, legal fees, software subscriptions, advertising and consultancy, limited to the six months before the effective date of registration.

The claim goes in the first VAT return. Keep the original VAT invoices addressed to the business, or to you personally where the business was not yet incorporated but the expenditure was clearly for it, plus a schedule showing what was bought, when, and that the goods are still held.

First returns with large pre-registration claims are checked more often than routine returns, so having the schedule ready avoids a delay in the repayment.

Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.