I am hoping someone can help! I have a client who is currently self-employed, and has been for 4 years. I registered him for VAT a couple of months ago, so am close to submitting his first VAT return. He bought a van in the last year, so I plan to reclaim the VAT on the van for him, plus other materials and services as allowed. However, he has bought a number of tools since starting his business, for which I have most of the invoices, which would have been claimed for under his Annual Investment Allowance (when his accountant submitted his SA tax return). My question is, can I now reclaim the VAT paid on those tools? The AIA figures submitted include the VAT value (if not vat registered at the time), if I am not mistaken, so if I reclaim the VAT now, would this be reclaiming twice effectively? The more I think about it, the more I am confusing myself!
