VAT exemption issues

Hi, I’m having a problem with VATexemption and VAT returns. I run a mobility business. 99% of my clients are VAT exempt due to disability or long term illness. When I create a client for each sale I mark the person as EU exempt, which seems to work.
My main problem is… Purchases. I obviously need to reclaim VAT on all of my because I am not charging customers VAT.
When I set up a new supplier the system seems to limit wether I can reclaim VAT because there is a £2,000 threshold.
Any advice or suggestions would be very welcome?

chris

It would only do this if you are on the Flat Rate VAT scheme. Are you actually on the Flat Rate VAT scheme with HMRC?

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