VAT newbie.

"About 18 months" isn't close enough. Go back and list your turnover (borrow somebody's Excel because this is a *very* tedious thing to do by hand) month by month, and find when the rolling 12 month total of Sales exceeded the rolling VAT threshold. There will be a few invoices/payments (which are you going to use?) near the months' begininnings and ends. Jiggling these about will bring registration

*much* closer to now.

Forget about your inputs for the time being. Missing your VAT registration is serious and, quite apart from the 15% or 17.5% VAT due, carries interest and penalties.

This is just amazing. What line of busness are you in?

You become registered on the first day of the next but one month following the one in which you exceeded the threshold.

I suppose this is a troll, and I'm the only person foolish enough to have fallen for it. Anyway, just in case it isn't, for the *ultimate* newbie in VAT - respect to you sir! - here is what will happen:

1) You owe VAT on every invoice you have issued during those 2 years. 2) If you trade with VAT registered people, and you haven't pissed them off too much, they *might* pay the VAT for you. Otherwise 17.5% of 100k+ say £20,000 you owe. 3) ...plus interest and penalties. 4) Your accounts and tax returns are wrong and may need to be resubmitted. 5) You have 8 VAT Returns to prepare. ...and to answer your original question... 6) Reclaim VAT on your Advertising on the VAT return.

Get yourself a Chartered Accountant, because you needed one two years ago, and you certainly need one now :(

Actually it will only be one, but it will cover the whole of the backdated period.

Why not 6% flat rate on turnover? (just curious as I don't know much about it but need to soon!)