Reclaiming VAT on Capital Expenditure Good.
If you’re enrolled in the Flat Rate Scheme, you can reclaim the VAT you’ve been charged on a single purchase of capital expenditure goods where the total amount, including VAT, is £2,000 or more. This is a valuable advantage for businesses making substantial investments in equipment, machinery, or other capital assets. Output Tax Due on Disposal
It's important to note that when you dispose of capital expenditure goods, you must account for output tax. Output tax is the VAT charged on the sale or disposal of these goods. If you’ve reclaimed VAT on the purchase of these items, you'll need to pay HMRC the relevant VAT when you sell, transfer, or dispose of them.
