HMRC has issued updated guidance that explains how private schools can reclaim VAT incurred on services received before they registered for VAT. There has been some confusion about how the rules apply so the updated guidance on gov.uk clarifies the position. The guidance states that, subject to other conditions being met, the business can "recover a portion of the VAT relating to the taxable use after registration using a fair and reasonable method" even if it has used that service to make exempt supplies before registration. There are also helpful examples in the guidance.