Client is a vat registered sole trader. Has one residential property let as well. The letting is exempt for VAT purposes. Can he reclaim the vat on the letting expenses; if so should he also put the letting proceeds as sales in his vat return? If this is possible can he adjust previous vat returns to reclaim vat from the past. I initially thought this would not be possible because letting is an investment business not a trade but researching on the internet maybe it is possible?