If a bill has been coded to a fixed asset account and has a value over £2000 including VAT, the system will include this on your next VAT return in box 4 and 7.
As per HMRC guidance:
If you use the Flat Rate Scheme, you can reclaim the VAT you have been charged on a single purchase of capital expenditure goods where the amount of the purchase, including VAT, is £2,000 or more.
You deal with these capital expenditure goods outside the Flat Rate Scheme. This means that you claim the input tax in box 4 of your VAT return.
If the supply is:
- more than one purchase
- under £2,000 including VAT, or
- of services
then no VAT is claimable, as this input tax is already taken into account in the calculation of your flat rate percentage.
For additional help, click here to view all our training options.
Technical support is available on Monday to Friday from 9 - 5. You can call us on 0203 475 4744 or email us at email@example.com.
Alternatively, visit our Community to view our latest news & updates, raise new ideas, find answers to common problems, ask new queries and speak to other Clear Books users and employees.