I have a joint lease on shared premises with another business. We have an agreement that all costs are split 50:50. We have received one invoice for the rent, albeit made out to both companies, and we have paid half each. Is it OK just to reclaim half the VAT? 

Arthur replies: 

The answer to your question is yes, provided: (a) the premises were leased to the VAT-registered business; (b) the premises were used for business purposes; (c) the invoice is a valid VAT invoice; and (d) only the portion of VAT corresponding to your business’s share of the expense is reclaimed, as you have written.