Claiming input VAT on Flat Rate Scheme
Normally the input VAT is not considered if your business is registered for a FRS. So you simply apply the percentage of Flat Rate applicable to your business and ignore the input VAT. But you may be losing some pounds if you have made a significant purchase of fixed assets, equipments and other business assets. Here, HMRC allows you to claim the VAT on such purchases meeting certain conditions.
- The purchase must be of assets to be used in business
- The purchase should be a single item or a package of items to be bought together
- The purchase must be in excess of £2000
Note: The Value of Purchase Net of VAT (net purchase) must be put on the box 7 (net purchase) of VAT Return.
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