VAT Scheme CompareFarm 67
VAT Scheme Compare · HMRC guidance reviewed 6 August 2026

Input VAT break-even and the £2,000 capital-goods exception

Keep ordinary input VAT out of the Flat Rate payment and review qualifying capital expenditure goods separately.

Decision boundary

Flat Rate users generally do not recover input VAT. A single qualifying capital-goods purchase of at least £2,000 including VAT may follow the detailed exception.

Evidence to check

Compare this VAT period

Official source

HMRC VAT Notice 733: capital expenditure goods

General information only. HMRC decides scheme eligibility, rate and leaving dates.

Related guides

VAT Flat Rate calculator: use VAT-inclusive turnoverApply the selected HMRC rate to VAT-inclusive turnover and keep standard-accounting inputs separate.Limited cost business test: 2% and £1,000 rulesTest relevant goods against both HMRC limits for each VAT return period instead of self-classifying once.Flat Rate vs standard VAT: compare the same periodCompare cash paid to HMRC without treating the lower estimate as proof that a scheme is suitable or available.

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