I'm starting a LTD company in the UK and have a question surrounding the way that allowable expenses are claimed.

I understand that this question has probably been asked numerous times but no matter how I word it I can't seem to find the answer to my question; Lost under all the other keywords VAT, allowable expense etc.

My question is when filing an allowable expense for my business should I use the full price of the item inclusive of VAT or the full price exclusive of VAT.

For example:

I buy a £1000 laptop which has VAT of £200. The total sale price is therefore £1200.

Should I claim:

A: £1000 (Exclusive of VAT)

B: £1200 (Inclusive of VAT)

It may also worth noting that my company is not currently VAT registered.

Thanks in advance.

  • I assume (since that's the case in germany) that if you paid VAT you include it. A business can buy stuff without paying VAT (since it will get that back anyway).
    – xyious
    Mar 4, 2019 at 17:05


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