18/10/2026
đ° VAT registered? Hereâs what you can (and canât) claim back!
Bought a laptop? Taken a client out for lunch? Paid for the staff Christmas party?
Theyâre all business expenses, but when it comes to reclaiming VAT, theyâre not all treated the same!
Letâs look at some everyday examples. đ
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WHAT CAN YOU USUALLY RECLAIM VAT ON?
đť Laptops, printers and office equipment used for your business.
đĽď¸ Business software, subscriptions and stationery.
đ¨ Hotels when youâre away on a business trip.
đ Staff Christmas parties and team events. Yes, really! There are rules, but VAT on genuine staff entertainment can normally be reclaimed.
â WHAT CANâT YOU USUALLY RECLAIM VAT ON?
đ˝ď¸ Taking a client out for lunch. Even if you spend the whole meal talking about work!
đď¸ Personal purchases. Paying through your business account doesnât automatically make something a business expense.
đ Buying a car thatâs available for personal use. VAT recovery is generally restricted, although there are exceptions.
đˇ Insurance premiums. These are normally VAT exempt, so thereâs no VAT to reclaim.
đ¤ WHAT ABOUT THE GREY AREAS?
đą Use your mobile for work and personal calls? You can generally reclaim the business proportion of the VAT.
â˝ Fuel for both business and personal journeys? Specific rules apply to what you can reclaim and the records you need.
And hereâs something else worth rememberingâŚ
Just because youâve bought something for your business doesnât mean VAT was charged. Youâll also need appropriate VAT evidence to support your claim.
There are additional restrictions if you use the VAT Flat Rate Scheme or make VAT-exempt supplies.
The important thing is knowing the difference between a business expense and an expense you can reclaim VAT on. Theyâre not always the same thing!
Not sure whether you can reclaim VAT on something? Ask us! Weâd much rather help you get it right than see you claim something you shouldnât, or miss out on something you could.