Share alike

Mr and Mrs X are a husband and wife who each carry on their own part-time consultancy businesses based from home.

Mrs X is VAT-registered although below the registration limit and in fact in the past year or so her income has been below the income tax personal allowance.

Mr X is not VAT-registered but although his turnover is below the VAT limit he has been considering voluntary registration as most of his income is now coming from VAT-registered businesses rather than private customers.

Mr and Mrs X share their computer which is used for the purposes of both businesses.

The computer is getting on a bit now and they are looking for a new one.

They have asked whether there is any way in which Mrs X can reclaim the VAT on the computer while Mr X can claim the capital allowances.

I...