by Asim Abbas
11 November 2026 
How to reclaim VAT: what you can and can’t claim back
How to reclaim VAT: what you can and can’t claim back
Once you’re VAT registered, you can usually reclaim the VAT you pay on business purchases. That can be a real boost to cash flow, but only if you claim correctly.
- Reclaim VAT on business purchases with a valid VAT invoice
- Goods bought up to 4 years before registration can qualify
- Services bought up to 6 months before registration
- Entertaining and most cars are blocked
Some costs are blocked completely, some are partly reclaimable and others depend on when you bought them.
This guide explains the rules, including what you can reclaim from before you registered.
The basic rule
You can reclaim input VAT on goods and services you buy for your VAT-taxable business, as long as you have a valid VAT invoice and the supplier charged VAT correctly. You claim it on your VAT return, which reduces the VAT you pay to HMRC or creates a refund.
What you can’t reclaim
- Business entertainment of clients or suppliers
- Most cars, unless used only for business and not available for private use
- Purchases for private use
- Purchases relating to VAT-exempt sales, subject to partial exemption rules
- Goods bought under the Flat Rate Scheme, except single capital items over £2,000 including VAT
Costs you can partly reclaim
| Cost | How much VAT |
|---|---|
| Leased car with some private use | 50% of lease VAT |
| Fuel with private use | All, then pay the fuel scale charge, or claim business mileage only |
| Mobile phone with private calls | Business proportion |
| Staff entertainment, such as a party | Usually reclaimable |
| Home office costs | Business proportion |
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VAT on purchases before registration
When you register, you can reclaim VAT on:
- Goods bought in the four years before registration, if you still have them or used them to make goods you still have
- Services bought in the six months before registration
Ola registers for VAT in October 2026 when her sales pass £90,000. She bought a £2,400 laptop (including £400 VAT) in 2024 and still uses it, and paid £1,200 (including £200 VAT) for a website in July 2026. She can reclaim £600 on her first VAT return, as long as she has the invoices.
Time limits
You normally reclaim VAT on the return for the period the invoice relates to. If you miss it, you can claim on a later return, within four years of the original return’s due date.
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179What counts as a valid VAT invoice?
- Supplier name, address and VAT number
- Invoice date and unique number
- Description of goods or services
- Net amount, VAT rate and VAT amount
- Simplified invoices are allowed for retail sales up to £250
A card receipt isn’t a valid VAT invoice. Keep invoices digitally, as Making Tax Digital for VAT requires digital records.
Common mistakes
- Claiming VAT on suppliers that aren’t VAT registered
- Claiming VAT on client meals
- Claiming the full VAT on a car purchase
- Claiming on zero-rated items like train tickets or most food
Read HMRC’s guidance on reclaiming VAT, our guide to the £90,000 VAT threshold, or ask our VAT accountants to review your claims.
What should I do next?
Not card receipts.
4 years goods, 6 months services.
Entertaining and cars.
Frequently Asked Questions
Can I reclaim VAT without a VAT invoice?
Generally no. You need a valid VAT invoice, or a simplified invoice for retail purchases up to £250.
Can I reclaim VAT on client entertainment?
No. VAT on business entertainment is blocked, although staff entertainment is usually reclaimable.
Can I reclaim VAT on a car?
Only if it is used exclusively for business and isn’t available for private use. Leased cars usually allow 50%.
How far back can I reclaim VAT when I register?
Four years for goods you still have, and six months for services.
What if I forgot to reclaim VAT?
You can claim it on a later return, within four years.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
