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in todays video were going to take a look at reclaiming a proportion of vat in xero [Music] so first of all why would you be reclaiming only a proportion of your vat so if we refer to hmrcs website which is always a good place to go to we can see that youre able to reclaim v80 on goods and services purchased for use in your business but what happens sometimes you might purchase something and its not fully for business use so for an example you might have a telephone bill and theres a percentage lets say 20 thats personal use so in that case you would only be able to claim 80 of the vat another example and this is the one that were going to look at is when you lease a vehicle if you have an operating lease so its not a vehicle that you own its a vehicle that youre hiring if there is personal use hmrc allows you to reclaim 50 of the v80 so what were going to do is were going to head into zero and were going to look at how that works but before we do it would be great if yo