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Can you reclaim VAT on this cost?
A general guide based on HMRC VAT Notices 700, 700/64 and 700/65.
The three tests for a safe claim
- Business use: the cost is used for your taxable business. For costs used privately as well, reclaim only the business share.
- Evidence: you hold a valid VAT invoice showing the supplier's VAT number. Check unfamiliar VAT numbers before you claim.
- Time: you claim within 4 years of the due date of the return on which you were first entitled to claim.
What you usually cannot reclaim
| Cost | The rule |
|---|---|
| Entertaining clients or other non-employees | Blocked, except for overseas customers |
| Entertaining your own staff | Usually reclaimable |
| Buying a car | Blocked, unless it is used only for business and not available for private use, or is a taxi, self-drive hire or driving school car |
| Leasing a car | 50% blocked if there is any private use |
| Fuel | Reclaim all and pay the fuel scale charge, or reclaim only business mileage using records |
| Costs for exempt or non-business activities | Not reclaimable, apart from small amounts under the partial exemption rules |
Evidence that keeps claims safe
- A full VAT invoice, or a simplified invoice for purchases up to £250.
- For imports, your postponed import VAT statement or import VAT certificate.
- Your digital records linking each invoice to the figure in Box 4.
- Records kept for 6 years.
For what a VAT invoice must show, see VAT invoice requirements.
If you have claimed wrongly
Correct net errors up to £10,000, or up to 1% of Box 6 with a £50,000 limit, on your next return. Report larger errors to HMRC. Telling HMRC before it finds an error can reduce any penalty.
Every box checked before it goes to HMRC, from £5 a month
Swift VAT Pro works out Box 3 and Box 5, checks every box and explains HMRC errors in plain English.
- Connect to HMRC on HMRC's own page with your Government Gateway sign-in. We never see that password.
- See your VAT periods, due dates, amounts owed and payments, read from HMRC.
- Upload your nine box totals as a CSV. Box 3 and Box 5 are worked out and every box is checked.
- Submit and keep HMRC's receipt. Reminder emails arrive before each due date.
No card needed · From £5 a month · Plans for up to 100 businesses · Filing through HMRC's MTD service since 2019
Final thoughts
Safe VAT claims come from three habits: claim only business costs, hold a valid VAT invoice for each one, and keep blocked items out of Box 4. Then let your software check the figures before you submit.
Disclaimer: This guide gives general information, not advice for your business. If you are unsure how the rules apply to you, speak to an accountant or contact HMRC.
Frequently asked questions
Checked against HMRC VAT Notices 700, 700/64 (motoring), 700/65 (business entertainment) and 700/45 (correcting errors). November 2026.
What makes a VAT claim safe?
Can I reclaim VAT on client entertainment?
Can I reclaim VAT on a car?
How long do I have to reclaim VAT?
What if I reclaimed VAT I should not have?
Every box checked before it goes to HMRC, from £5 a month.
Swift VAT Pro files your return to HMRC from the spreadsheet you already keep. From £5 a month.
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