Hi, Just confirming that what i believe is true:
Client is registering for VAT after a few years in business. He has a laptop and various other capitalised assets and wants to reclaim the VAT on them. They are all still in use in the business.
Am I right in thinking that since the whole amount was capitalised and AIA claimed, that when the VAT is reclaimed we have to treat the VAT element as a disposal of assets and pay a balancing charge?
thanks in advance