HMRC says that a limited cost trader is a business that buys only a few goods. More specifically, a limited cost trader’s spend on goods, including VAT, in a quarter is:
-less than 2% of its VAT-inclusive sales for that quarter,or
-more than 2% of its VAT-inclusive sales for that quarter, but less than £250
This figure should exclude the cost of assets not used the following items:
food and drink for the business or its staff
vehicles, vehicle parts and fuel (unless your business uses its own vehicles in the transport business, for example if you run a taxi hire firm)
‘relevant goods’ are exclusively for business, hence staplers, hole punchers, paper etc that used at your home office are UNLIKELY TO QUALIFY as revelant goods under strict application of the law. However letterheaded paper will.