Hi ...
I'm on the flat rate scheme first year, I pay vat at 6.5% on first year, now when the old rate was used 17.5% I bought a new van, then went onto the flat rate scheme.
I was told that Items bought over £2,000 on the flat rate scheme, that vat can be reclaimed.
The item was paid for with a loan and the vat paid...I now repay the loan, if I claim back the vat I would enter it as payment from HM Revenue in SA, but would I enter the purchase as a full payment in SA
Hi Stuart,
Yes, enter the van purchase into Solar Accounts with a VAT rate of 17.5%. Then click the small 'up arrow' next to the VAT Treatment box and untick 'Flat Rate Scheme applies to this transaction'. The purchase will then affect your VAT Liability account balance (you can see how this balance is calculated in the Account Activity screen).
Finally, when you record your VAT payment from HMRC set the From Account to 'VAT Liability' as normal.
Regards,
