I am not yet VAT-registered, but I am considering registering. I work in logistics. I was considering joining the flat rate scheme (FRS) as this works for my industry; however, I am told I would not be able to claim the VAT back on my recently purchased vehicle. I am further told that to claim the VAT on the vehicle, I need to register for VAT, claim the VAT on the vehicle, and then change to the FRS. This is confusing to me. Please could you offer some clarification? 

Arthur replies: 

Your plan is reasonable. You have already bought the vehicle. If it is used for business, you can now register for VAT (within four years of the expenditure) and reclaim input VAT. After reclaiming the input VAT on the vehicle, register for the FRS.