VAT voluntary registration, backdated, combining flat rate scheme and expensive capital assets.


I have a client who has turnover below the level triggering compulsory registration for VAT. The client only works with customers who are registered for VAT so would not lose business by voluntarily registering for VAT.

The client has recently incurred  (within the last 6 months) £1,000 in VAT on two items of capital expenditure (both exceeding £2,000).


If my client decides to voluntarily register for VAT then

a) Can my client backdate a voluntary VAT registration to the date of the earliest aquisition of one of these two items of expensive capital equipment?

b) Can my client also opt for the flat rate scheme for their trade/profession to be effective from the backdated registration date?

c) Will my client be successful in reclaiming the VAT on these 2 pieces of expensive capital equipment if under the flat rate scheme?

d) Going back to the backdated regiustration date, does my client need to issue "VAT only" invoices to each customer previously invoiced  without VAT?

Many thanks



There are 2 comments. Login or register to view them.


luke.hector |

Why backdate?

spidersong |