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Hi Jo
What makes you say you can't claim for COS items? As long as it's stock you have on hand on the day of registration (and was VATable), it's claimable.
You do the first return in the normal way from date of registration, plus add on the 'pre-reg date items into box 4, and box 7 on your first return (you only get one chance at this).
Depending how many items it involves, you may find it easier to 'turn on' the VAT on reg date, then do the first VAT return within the software as normal after the first 4 months, but then manually list all the additional items you're going to claim from pre-reg date, do a journal in the software to allow for it, and add it manually onto the first VAT100 figures prior to filing it manually online (not through the software) This is how I did it with one of my clients.
If you decide to include the pre-reg items within your software, I don't know about SAGE because I use QuickBooks - but again, the way I dealt with it with another client, was to 'turn on' VAT from reg date, then go back to eligible transactions and change the code accordingly, this would then get picked up on the exception report and included in the first VAT100 accordingly.
Any transactions you don't want to include on the VAT report at all should always be 'Out of Scope' which I believe is the T9 code in SAGE. This would certainly apply to items that aren't eligible because they're pre-reg date and not still in stock or being used in the business (i.e. used up stationery). Items bought after reg date would have the 'zero rated' code for zero rated items (food etc), and perhaps suppliers that aren't VAT registered (unless you've set up a special code for this) so that these figures do indeed go into box 7 for the statistical purposes, but don't add any value to box 4.
Hope that helps
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