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FA fudge

26 April 2011 / Neil Warren
Issue: 4301 / Categories: Comment & Analysis , VAT
The flat-rate scheme and fixed assets are not a match made in heaven, says NEIL WARREN

KEY POINTS

  • Background to the flat-rate scheme.
  • The application of the £2 000 limit for fixed assets.
  • The exclusion for assets to be leased out.
  • Must VAT be charged on the sale of fixed assets?
  • Applying the principle of proportionality.
  • The treatment of overseas purchases.

There are certain things in life that just don’t go together very well. Fudge and false teeth are a case in point (so my old gran used to tell me); flip-flops and football are another mismatch and to continue the alliterative theme so are fixed assets and the flat-rate scheme.

This combination can produce some potential pitfalls and in this article I will try and unravel some of the mysterious issues relating to their...

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