New Startup as a Smallholder VAT

[fzx5v0]

Hi
My partner with my help will be starting out as a smallholder on the 5th April and registering for self assessment. I do not envisage her either making any money in the first 2 years and turning over £85K.

During the first few years there will be considerable investments made for example new equipment 7K, new shed 20K and animal feed / bedding.

Can she register for VAT and claim it back in the first few years from starting up?

Thanks for any advise
Grant

 

[lesvatadvice]

Yes, register for VAT and reclaim input tax on costs.
Do check that your sales will be zero rated (sale of food produce, animals for human consumption, etc).

 

[fzx5v0]

yes sales should be zero rated. There may be products that are not like if she makes any soaps etc

 

[Scalloway]

In my experience many smallholder register for VAT as they reclaim far more than they pay over .