Helloo,
I am trying to work out the treatment of the sale of a capital item on the FRS. I know that if you buy an asset over £2,000 you can offset the VAT as normal and when selling it you also treat the VAT as if it were the standard scheme (add the full amount of VAT charged in box 1). However what if the asset was below £2,000 and the VAT not reclaimed? When selling that asset would the flat rate percentage apply to the gross value or would you not pay any VAT on it?
Any help would be greatly appreciated!
Replies (2)
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Hi
VAT Notice 733 - Flat Rate Scheme for Small Businesses
http://www.hmrc.gov.uk/manuals/frsmanual/frs6500.htm
Check Par. 15 - Capital Expenditure Goods