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It was guidance from my accountant and other contractors have said the same. Receipted lunch and travel expenses are reclaimable when I am on a client site. Which I am most days, as I prefer to work closely with the client's team, though reserve the right to work from wherever I want. Most notably, last year, I did a few days work from a rented office in Australia where I was on holiday at the time! I claimed the office rental too...

Best I can find on VAT in a ten-second search is this -

https://www.gov.uk/government/publications/vat-notice-733-fl...

Sections 15.1 and 15.2 are where you'll want to look.

Oh, and the overview section from this much simpler guide :)

https://www.gov.uk/vat-flat-rate-scheme

--edit--

This £2K thing probably does only apply to companies on flat-rate schemes.

The idea is that for a small business, the overheads of processing all the VAT refund stuff are just too large, so you give relief on large purchases only, and the income boost I mentioned in the other post is probably supposed to make up for it. Or something. I don't claim to fully understand!



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