✅ Pre-Registration VAT Checklist: Assets Previously Used Personally

📌 Step 1: Was the asset introduced to the business before VAT registration?

• ☐ Yes – continue
• ☐ No – ❌ Cannot claim

📌 Step 2: Is the asset still in use by the business?

• ☐ Yes – continue
• ☐ No – ❌ Cannot claim

📌 Step 3: Is the asset used for taxable business activities?

• ☐ Yes – continue
• ☐ No – ❌ Cannot claim

📌 Step 4: Was the asset used privately before?

• ☐ Yes – adjust claim based on business use %
• ☐ No – full business use assumed

📌 Step 5: Determine Market Value at Transfer to Business

• ☐ Estimate fair market value at the time it was introduced to the business (e.g., resale price, depreciation guide)
• ☐ Use 1/6 of market value to calculate VAT reclaimable if no VAT invoice available

📌 Step 6: Apportion for Business Use

• ☐ Estimate business use percentage (e.g., 100%, 80%)
• ☐ Multiply VAT element by business use %

📌 Step 7: Evidence to Keep on File

• ☐ Proof of original purchase (optional but helpful)
• ☐ Market valuation basis (screenshots, depreciation tables, resale listings)
• ☐ Record of date the asset was introduced to the business
• ☐ Calculation of VAT claim

📌 Step 8: Include in First VAT Return

• ☐ Manually adjust VAT Return Box 4 to include this claim
• ☐ Retain workings and evidence in case of HMRC enquiry

✅ Example Entry (Quick Reference Table)