VAT CASES - 04.12.2018

Racing car engine was not capital expenditure goods for flat rate scheme.

Key points. R also made the mistake of thinking that the relevant figure was the total cost of the expenditure and that as long as this exceeded £2,000 an input tax claim could be made. But this is an incorrect interpretation of the legislation. HMRC accepts that if linked items are bought at the same time and on the same invoice, then the total cost is the relevant figure, e.g. a catering business buying a microwave, oven and fridge jointly at the same time.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed bibendum, sapien nec interdum commodo, ex elit feugiat velit, vel tincidunt nibh massa nec turpis. Phasellus rutrum pulvinar tristique. Aenean vel maximus velit. Integer in purus dictum, commodo diam sed, facilisis metus. Duis sed consequat nisi. Phasellus et risus neque. Curabitur mattis, nibh ac finibus bibendum, nulla augue commodo ipsum, vitae tristique urna felis in velit. Cras et eleifend lorem, in convallis leo. Fusce id nibh et leo congue convallis. Vivamus imperdiet ipsum sit amet felis condimentum, a lobortis felis rutrum. Integer ullamcorper, turpis in aliquet tincidunt, est tellus volutpat leo, id pretium massa nibh sed orci. Pellentesque ac viverra lacus. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Ut ut ante eget nulla volutpat tempor. Donec commodo leo mi, congue blandit leo euismod ut.