Commentary

V7.232A Flat rate scheme—planning points to consider

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.232A Flat rate scheme—planning points to consider

Part V7 Tax planning | Commentary

V7.232A Flat rate scheme—planning points to consider

The following planning points should be given consideration.

  1.  

    •     Note that the flat rate scheme allows a business buying capital goods costing at least £2,000 including VAT to reclaim input tax on the purchase of the assets. There may be opportunities for a business to buy a slightly more expensive asset (eg upgraded computer) to exceed the £2,000 limit to benefit from the VAT saving.

  2.  

    •     However, be aware that an input tax claim does not apply in relation to building projects, eg an office extension, because the supplies in such cases

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