I'm starting a LTD company in the UK and have a question surrounding the way that allowable expenses are claimed.
I understand that this question has probably been asked numerous times but no matter how I word it I can't seem to find the answer to my question; Lost under all the other keywords VAT, allowable expense etc.
My question is when filing an allowable expense for my business should I use the full price of the item inclusive of VAT or the full price exclusive of VAT.
I buy a £1000 laptop which has VAT of £200. The total sale price is therefore £1200.
Should I claim:
A: £1000 (Exclusive of VAT)
B: £1200 (Inclusive of VAT)
It may also worth noting that my company is not currently VAT registered.
Thanks in advance.