I understand you can reclaim expenditure from prior registering for VAT. What I was wondering is if it is the same for Flat Rate as it is for normal.
My instance is that my client purchased a large printer (they are a printing firm) for £10k+ VAT a couple of months ago, can they claim the VAT back as a capital expense (over £2000) under the Flat Rate scheme? They are going to apply for VAT registered, I am just trying to work out which would be more beneficial.
Goods purchased pre VAT registration and accounted for on the first VAT return are outside the scope of the flat rate scheme.
Everything claimed that is purchased after flat rate registration is subject to the normal flat rate rules.
So, get collecting all of the VAT receipts for everything even if just a few pounds as they are all claimable so long as they date from before registration (should make for a happy client!).
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks Shaun! is that to see 733 as I cannot find a 700/33? but the section 7.6 makes sense :)
oooh so anything good still in stock and things like installation services for the phone and computer systems can be claimed (only started in October so in the 6 months).
If you claim back insurance VAT would you account only for the portion of the year that you are VAT registered or for the whole policy? I am looking at it from the basis that you can only claim on purchases that relate to the business after the registration, so if you have used the items prior to registration you cannot claim. Is this right?
A word of warning when claiming back goods still in possession at VAT registration date. (Thinking of the 10k printing machine here)
HMRC guidance (1) is that you should only claim back the VAT relative to its value at registration. (eg if its only worth 6k now that is the element of VAT you should claim on)
(1) Guidance that has never been tested in court and based on HMRC re-interpretation rather than the VAT rules.
This is worth a read and read the comment as well,as they both differ http://www.taxation.co.uk/taxation/Articles/2015/06/05/333211/moving-goalposts
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
