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Hi .i am having problem with this question..
Input tax of £14 720 was incurred for expenses.
In addition, Long Ltd has discovered that it has not been claiming for input vat of £18 which it has paid each month since 1 January 2014 for hire of photocopier machine. What is input tax recoverable for quarter ended 31 march 2020?Claim should be 4 years for nca..but in answer it accounts for 4 yrs and 3 months for photocopier machine. Why is it so?
Where it is discovered that VAT has been overpaid in the past, the time limit for claiming a refund is four years from the date by which the return for the accounting period was due.
You have not supplied sufficient information – I will need to see full answer – is there no explanatory note in the answer?Scenario
Input vat of £14720 was incurred in respect of expenses
In addition to above, long ltd has discovered that it has not been claiming input vat of £18 which it has paid each month since 1 Jan 2014 for hire of a photocopier.
Question is what is the amount of tax recoverable by long ltd for quarter ended 31 March 2020?
Answer is
Expenses= 14720
Hire of photocopier =918
18 *((4yrs * 12= 48 months)+3months )Refunds of vat are subject to 4 yr time limit so input vat for hire of photocopier incurred during quarter ended 31 march 2020,long ltd can also claim input vat incurred during 1 jan 2016 to 31 dec 2019
Many thanks in advance for replying Sir
The 4 year period is simply the 4 years BEFORE the current VAT Return period
Dear Sir.
I understand the 4 yr claim..but why does the answer consider 3 additional months?
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