April 1st, 2015

Buying Equipment When You’re On The VAT Flat Rate Scheme

Lots of creative businesses benefit from being on the VAT Flat Rate Scheme (FRS).

When a business is on the FRS you don’t usually get to recover any VAT on the stuff you buy.  Instead the VAT you pay over is just based on a percentage of your sales. But, in the right circumstances, it’s possible to claim VAT back on equipment you buy for your business.

Here’s the basic rules:

1. You need to spend more than £2,000 including the VAT

2. It’s fine to buy a package of stuff that comes to more than £2,000. So, a new computer, printer, monitor, software etc would all be fine.  You need to make sure that you buy it all at the same time from the same supplier though.

3. Services don’t count.  It needs to be equipment.

If you need any help with making the VAT system work best for you and your business then just get in touch.

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Freelancers Limited Companies


John manages a wide portfolio of owner managed businesses and oversees the smooth operation of the firm’s payroll department.

After obtaining his degree in mathematics from the University of Liverpool, John joined Jonathan Ford & Co in 2004 and qualified as a chartered accountant four years later. John likes to keep abreast of developments in tax and accounting and is responsible for the mentoring of junior staff.

Outside of work, John enjoys powerlifting and is a Liverpool FC season ticket holder.

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