Your manager has received schedules of information from Ray and Shanira in connection with their personal tax affairs. These schedules and an extract from an email from your manager are set out below.

Extract from an email from your manager — dated 9 June 2016 
Please prepare a memorandum for the client files which addresses the following issues:

(a) Ray - unincorporated business
(ii) Ray is incurring input tax and is considering registering voluntarily for VAT. Set out the information we need in order to advise him on whether or not voluntary registration is possible and/or financially beneficial and explain why the information is needed. 
An explanation of whether or not Ray can recover the input tax in respect of the computer purchased on 3 June 2016 if he registers for VAT.

Tax manager

(a) Ray — unincorporated business. 
(ii) Value added tax (VAT).        (5 marks)