Assume the following:
John is self-employed and registered for VAT.
In 2005, John purchases a van for business and claims back the VAT which he paid on the van.
Over the years John has been depreciating the van @ 20% against his profits.
In 2009, John decides to replace the van. If he sells the old van for 5,000 he should charge VAT on the sale of the van and add this to his T1 value in his next VAT return(i.e. 21.5 % of 5,000) , right?
Secondly in terms of the income to the business for 2009, should he include the money received from the sale of the van(5k) in his 2009 earnings?