VAT in the media industry can be notoriously complex, and many businesses end up paying too much or too little. But did you know that you can actually get some of that money back on eligible expenses? A skilled media accountant in London can help make value-added tax work for your media business by planning for these situations. They can help you recover the tax on goods used in your business on the date of VAT registration up to 4 years prior, as well as recover the tax paid on services up to 6 months before the VAT registration date.
Note that you can only reclaim VAT on expenses that are both tax-deductible and directly related to your business operations. This includes items such as IT equipment (work laptops, software) and professional services (legal, security). Expenses related to employment, marketing, and travel are often eligible for VAT recovery as well.
How to reclaim VAT for your media business
To initiate a VAT refund, you or your accountant must submit a VAT return to HMRC every three months, detailing the VAT you’ve paid. You will need to provide proof of payment for goods and services ideally through original receipts or valid VAT invoices.
What if you don’t have receipts?
You can still pursue VAT recovery by providing alternative proof of transaction, such as bank statements. However, you need to demonstrate that the expenses were incurred specifically for your media business operations.
How a media accountant can help
It can be challenging to demonstrate that purchased goods and services are directly for your media business. Invalid VAT invoices from suppliers can also complicate your claims because HMRC will not accept them as valid proof of VAT paid, preventing you from reclaiming that amount. Our media accountant in London can help ensure that all documentation is accurate. They can also handle the time-consuming process of filing VAT returns so you can concentrate on your core business activities.
Need help with tax refunds?
Schedule a meeting with a media accountant in London today. Call 0208 914 8887 to talk to our team here at Allenby Accountants.
