Should I have charged VAT?
I spent £700 on capital expenditure goods before I was registered for VAT, or on the flat rate scheme. No VAT was charged anyway, as it was bought from a private seller on eBay. I am now on the flat rate scheme and have sold the item for £650. Should I have charged VAT on that sale and included the gross total in my calculation for flat rate VAT? Or would the sale be zero rated as it was originally purchased before registration and excluded from turnover for the flat rate calculation?

Arthur Weller replies: 
Please see HMRC VAT Public Notice 33 (Flat Rate Scheme for small businesses), at the end of section 15.9. It says there: 'If you have not claimed input tax on capital items, either by choice or because it was not allowed, you must include the sale of those items in your flat rate turnover'.

This question was first printed in Business Tax Insider in July 2017.

Tax Insider Lite

FREE tax strategies delivered to your inbox every month.