New VAT registrations often sit on a small pile of reclaimable tax and nobody tells them.

The rules

GOV.UK sets two windows:

• Goods: bought within 4 years of registration, and still held by the business at registration. Stock, tools, a laptop, equipment. Goods used to make other goods you still hold also count.
• Services: bought within 6 months of registration. Accountancy fees, website costs, a solicitor’s bill for setting up.

Two conditions sit behind the time limits. The purchase must belong to the business that is now registered, and it must relate to your business purpose, meaning the VAT-taxable goods or services you supply.

What does not count

Materials you used up before you registered. If the timber went into jobs you completed before your registration date, the VAT on it is gone. Services older than 6 months are gone too, whatever they cost.

How you claim

On your first VAT return, in the input tax box, with the invoices to back every line. This is why pre-registration paperwork matters: no VAT invoice, no reclaim. If you are about to register, dig out the receipts for the last four years of kit and stock before your first return goes in.

A worked example

A carpenter registers for VAT on 1 September 2026. In 2024 she bought a van and workshop equipment for £18,000 plus £3,600 VAT, all still in use. In May 2026 she paid £600 plus £120 VAT for a new website. Both claims fit: the van and equipment are within 4 years and still held, the website within 6 months. Her first return reclaims £3,720.

Worth knowing before you register voluntarily

This reclaim is one of the better arguments for voluntary registration, covered in the separate answer on that. If you are sitting on recent capital purchases and your customers can absorb VAT, the numbers can tilt towards registering sooner.

Sources

All pages checked 20 October 2026.

• Reclaim VAT on business expenses: https://www.gov.uk/charge-reclaim-record-vat/reclaim-vat-business-expenses
• Register for VAT: https://www.gov.uk/vat-registration

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