My client started trading as a sole trader in May 2012. In June 2012 he bought a van (£6000 incl of vat). From January 2013 he is vat registered ( flat rate scheme). Can he claim back vat on the van? Thank you:)
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Yes
It's pre-registration input VAT. which can be claimed on the first Return of an FRS registered trader.
For anyone else reading this later...
Not applicable in your case Yvonnel_b but if you are doing this for an asset for which you have previously claimed capital allowances don't forget that the VAT reclaimed would count as a disposal on the asset.
That's not quite right
The VAT reclaimed doesn't constitute a disposal of the asset per se. So if it were held in a separate asset pool because there is private use, for example, that single asset pool would continue.
What S.238 CAA 2001 says is that the VAT rebate is brought into account as a disposal value, which simply means that it's deducted from the pool balance, as you'd logically expect it to be.
The effect of S.238 and S.239 taken together is that the original cost of the asset is treated as reduced by the VAT rebate received, but the VAT rebate is deducted in the period that it's received, rather than disturbing an earlier period.