UK VAT on capital expenses when not registered for VAT

Apr 2, 2015
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United Kingdom
I have begun working as a tree surgeon on a sole trader basis. The majority of my customers are private households or similar. I have not registered for VAT and don't expect to reach anything like the threshold in the coming year.

My question relates to purchases I make, for example: a chain saw might cost £1,000.00 + VAT@20%=£1,200.00
As I am not VAT registered (which would be a big disadvantage to my charges to customers by adding 20% to their bill) I am unable to reclaim the £200.00 VAT element.

However, when I make my tax returns which I will in time, will I be able to claim the full £1,200.00 paid as a capital expenditure?

In simple terms, If I presume to turnover £25,000 less my personal allowance of £10,000 leaving me with £15,000 will I then be able to claim/deduct the whole £1,200.00 for the saw as an expense (along with any others) as a one off deduction before arriving at a NETT profit figure.

Hope this makes sense ~ thanks

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