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Claiming VAT on purchases before registration

jiltjilt Font Of All KnowledgeRegistered Posts: 2,903
A sole trader client is now registered for VAT, registration date 01.04.09

I am aware that he can claim VAT on purchases prior to this date if they fulfil certain criteria ie they are not fully used at the registration date, for example assets.

My client became self employed in October 2007 and in his first year purchased tools and a van.

My question is, if I claim the VAT on these assets will I then have to make an adjustment to last year's account as I claimed capital allowances based on the gross value.

I have checked with the Inland Revenue who said no but I wondered if any members had come across this scenario as I want to be absolutely sure.


  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    I would personally deal with it in the current year rather than go back and re-write history.
  • groundygroundy Trusted Regular Registered Posts: 495
    In the past I have shown the VAT value as a disposal on the balance sheet in the year that the VAT was reclaimed.
  • jiltjilt Font Of All Knowledge Registered Posts: 2,903
    Thanks very much both of you.
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