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On Flat rate VAT purchases over £2000


I am new to this hello! In view of the future MTD I have signed up today. Currently on the flat rate so understand why purchases don’t show VAT but on asset purchases over £2000 that VAT doesn’t show either. So on a vehicle purchase of £20000 it should show £4000 that would then offset against the VAT you need to pay (which could result in HMRC owing me money for that quarter.



At the bottom of the purchase invoice you should see an option for this to be included on the return:

If you tick this (“Allow VAT to be reclaimed on this purchase”), we’ll include it in the calculations for you.