VAT - deduction of input tax


This course covers the deduction of input tax by businesses. It begins by dealing with the basic requirements for a business to obtain a deduction of input tax. It then looks at the key question of whether the business seeking to deduct input tax shown on an invoice did receive the supply, and considers a number of important recent cases on this point. The special rules which apply to deduction of input tax on cars and fuel used for business purposes are covered next, leading on to a review of the impact of VAT on employee expense claims. Finally, the issues which arise when input tax deductions are claimed by businesses which make exempt as well as taxable supplies are dealt with.

Learning Outcomes:

On completion of this course, participants will have a greater understanding of:

  • When input tax is deductible
  • The importance of determining who received the supply
  • When input tax on cars and fuel can be deducted
  • Deduction of input tax on cars and fuel
  • How input tax on employee expenses is dealt with
  • Input tax deduction when a business is partially exempt.

Authored by: Geoff Sykes

After qualifying with a small firm Geoff spent ten years in London with Deloittes, originally as a tax specialist, and later as National Tax Training Manager. For the next twenty years he was a tax partner in a medium sized firm based in Leeds and Kendal, advising a wide range of business and personal clients on all aspects of tax. He also has experience as a company director and as a director of a retail cooperative society.

Other courses

If you would like to cover this topic in greater detail, we run the following courses face to face.

Corporation tax refresher and update

Essential Tax Update for the Accountant in Practice or Employment

CPD Points: 1

CPD Duration (hours): 1

Access: 12 months from purchase date

Price (excludes VAT): £35.00