Readers’ forum: Input tax challenge

I am confused by the input tax rules on services incurred before VAT registration.

I have a client who has just registered for VAT – he runs an estate agency business. HMRC’s guidance says that he can claim input tax on services received in the six-month period before VAT registration but not if the service has already been consumed.

To give an example he registered for VAT on 1 October 2021 and his landlord issued an invoice on 1 July 2021 for £18 000 plus £3 600 VAT for premises rent up to 31 December 2021. So if my understanding is correct he can claim half of this VAT; in other words £1 800 for the period from 1 October 2021; in other words when he is registered. The period from 1 July to 30 September has already been consumed.

On telephone bills presumably...