Back

In the Flat Rate scheme, how do I record the VAT reclaimable on purchases above £2000?

If you use the Flat Rate scheme for calculating VAT for your organisation, you can reclaim the VAT for purchases above £2000 inclusive of VAT.

You can reclaim the VAT only for the purchase of Fixed Assets . You can either choose Furniture and Equipment or create a new Fixed Asset account.

To reclaim the VAT:

Create an expense and for the Expense Account, select for example, Furniture and Equipment under Fixed Assets.
In the Amount field, enter an amount greater that £2000 inclusive of VAT.
Fill in the other additional fields, if required.
Click Save.

This expense can reclaimed from the HMRC when filing your return.

Was this document helpful?

Yes

Was this document helpful?

By clicking Submit, you agree to our Privacy Policy .

Thank you for your feedback!