VAT Flat Rate Scheme - reclaim VAT on large asset purchasses

SUGGESTED

Hi

We are now registered for VAT wef 1 January 2021 on a flat rate scheme. In 2020 (previous financial year), we purchased 2 vehicles, and my understanding is that we can reclaim the VAT back of the vehicles at 20% with our first VAT return - due by May 21. The SAGE guide says to tick the box that identifies the asset as outside the flat rate scheme, however I then get an error message stating I cannot do this given there is a different VAT scheme in place... In settings, I have the correct entries. Does anyone know where I am going wrong - or should I manually amend the VAT return when I come to complete it? I would appreciate any advice or guidance please. 

Many thanks

James

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    SUGGESTED

    Hi James,

    Thanks for using Sage City.

    You will be unable to edit the original transactions as they were created on a different VAT scheme.

    You can either reverse these (using credit notes) and post new invoices which will allow you to select the option. Or post a journal to the VAT return to account for the reclaimable VAT.

    If you do use the "Adjust" options on the VAT return, please be aware that this may post figures o your corrections code (9999) and you may wish to journal these amounts to a different code.

    If this has answered your question please click More > Verify Answer.

    Tom

    Sage UKI