Hi if I am a flat rate VAT customer how do I enter general costs ie tyres , fuel car insurance etc without it afecting the VAT calcs. If I set that i am on flat rate wil it ignore any valuse in calculating my return. Is there a captital purchase limit that if exceeded I can still claim back the VAT even though I am flat rate registered
Thanks
James
Hi James,
When you tell Solar Accounts your flat rate percentage, Solar Accounts will automatically apply this rate to your turnover when it calculates your VAT return, and it will exclude purchases.
If you want to reclaim the VAT on a purchase (ie. it is over the limit for capital purchases) you will need to manually specify that the flat rate scheme does not apply to that transaction. See 'Reclaiming VAT on Capital Purchases' on this page for more details:
http://www.solaraccounts.co.uk/help/notes-on-the-flat-rate-scheme-for-vat.php
Cheers,
