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Not necessarily obvious Ruth, it rather depends when they envisage going beyond the VAT threshold. If it is likely to be during the same financial year, then yes you could potentially treat the relevant costs with a normal VAT code at the date of purchase. However, if you are unsure when VAT registration is likely to take place you should treat the expense as non Vatable and use T9.
Personally I would post ALL transactions before VAT registration with a T9 code. Should some of the input be VAT be allowable after the registration date I would just post it via a journal.
This of course is my personal view!
Claire
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