VAT Reclaim

Hello,

I have a farm and am thinking of getting a computer. Can I reclaim the VAT back on the computer as I will be using this computer for storing farm receipts, expenditure etc.

I am not VAT registered but have claimed VAT back on Farm Sheds etc


Thanks

Generally if you are not registered for VAT you can't claim unless there is something specific to farmers.

VAT can be reclaimed on Farm buildings and fixed equipment, but as a computer is not fixed permanently in a building then you cannot reclaim the vat on it. You may be able to claim capital allowances on a portion of the cost of the computer, ie if 20% of the time you use the computer is for farm accounts, then you should be able to write off 20% of the cost of the computer over 8 years.

For a computer costing 1,000, then you could claim capital allowances on 200 over 8 years, ie at 25 per year. It is not a lot, but every little helps.