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Hi
I'm assuming you've spent more on VAT recoverable things than jobs you've invoiced. Don't forget that every job you've had to charge 20% extra on the VAT man will want, obviously offset by the VAT on the good you've bought. I've only had a a few refunds and thats when i've bought new mowers.
Hope that helps
p.s my accountant looks after mine for me
Not sure what you mean Matt. You just deduct the recoverable amount from what you have charged in VAT on jobs and pay the nett figure over to the HMRC.
I think you would soon get a 'Can we pop along and check your records' letter, if you claim back more than a couple of times in our business!
It's very rare for businesses Input VAT to exceed its Output VAT on a regular basis (ie to obtain a VAT refund).
It generally happens only when you become VAT registered or you make a major purchase (ie new van etc) otherwise logic suggests you can't be generating sufficieint Sales income on which you pay Output VAT on (or you're taking "cash")
As Colin implies, it will set off all manner of alarm bells at HMRC
Expanding slightly upon what Gary RK has said, you can reclaim VAT for any goods bought for the long term and paid for up to four years before registering your own business for VAT. So all capital goods but not services. However, the services can be reclaimed for up to 6 months prior to your registration date. Not that businesses like ours tend to spend an awful lot on long term services. So this would be restricted to things like training or consultancy, the outcomes of which should at least be long lasting.
Hence many businesses do indeed collect a sizeable refund, but sadly only for their first VAT return. Or a subsequent one if they don't put the "start up" costs in the first one.