I am doing the year end for a business, they did not become VAT registered until 01/04, their YE is 31/03 so every expense at the minute is gross of VAT.
I will be claiming back VAT on a few items ie a large printer (which will fall under capital allowances) and a few set up costs ie setting up their phone line etc (all within last 6 months). However, when sorting out the year end for this year, will I be claiming expense deductions/capital allowances on the net or gross figure of VAT?
That is what I thought, but then wouldn't I be claiming twice, with the reducing the tax this year, then reducing the VAT next... I think I need to put my pens down and pick it up again in the morning! Head fuzz this time of night.
What about the capital asset, if not claimed under AIA this year would I carry forward the gross in the pool account, or would I adjust it when I have claimed the VAT back?
The asset was bought in December, so have option to claim AIA or put into pool for the 18%. Looking at the figures I think we will be claiming the 18% as the profits won't be huge (partnership only been going just under 6 months)
I've a question myself - if I buy a van for 10000 vat inc whilst not vat registered this will sit in the pool at 10000 (imagine there is no AIA) during the period, I exceed the VAT threshold, is there a need to make any retrospective adjustments to the 10000? Obviously once VAT registered the Van would sit in the pool with the VAT exc value if bought after registration. Just a thought Thanks
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
