VAT Margin Scheme & Horses

Then the second-hand margin scheme could work out to be financially beneficial for your business if you buy and sell second-hand horses and are facing, or already are, VAT registered.  Who Needs to Register for VAT Currently, all businesses with a taxable turnover of £85,000 or more (2019/2020) need to register for VAT. Need to (more…)

VAT Second Margin Scheme v. Global Accounting Scheme

The Second Hand Margin Scheme and Global Accounting Scheme are similar in principle, with the Global scheme being a simplified version of the margin scheme. VAT Global Accounting Scheme: An Overview What are the Key Differences Between the Two Schemes Although similar at a high level, there are differences between the second margin scheme and (more…)

VAT Second Hand Margin Scheme: Filling Out Your VAT Return

The VAT Second Hand Margin scheme carries with it specials rules when calculate the right numbers you need to include when filling out your VAT return. You’ll have to make sure you adhere to these, as well as the rules of the standard scheme when it comes to your other sales and purchases. When you (more…)

Let’s Paws for a Moment & Find out How Puppies Became the Subject of a VAT Investigation

You just need to check my instagram to see just how much I love puppies.  So as you can imagine the case of Little Rascal Pets Limited V HMRC caught my eye last year, not just because it involves puppies but also since it involved one of the most complicated and disputed VAT scheme available (more…)

VAT Second Hand Margin Scheme: Record Keeping & Bookkeeping

If you choose to use the VAT Margin Scheme then you are required by law to keep certain accounting records and HMRC will check you are compliant on each one if you are investigated.  The rules are strict and you’ll need to have a neat process set up to make your bookkeeping as painless as (more…)

VAT Second Hand Margin Scheme: Reclaiming VAT on Overheads

The VAT Second Hand Margin Scheme applies to any sales and purchases that meet the criteria of the scheme, however you may have paid for additional things which have VAT on them. You can reclaim VAT you have paid on any business overheads, repairs or accessories you buy just like anyone else who is on (more…)

Do I Include all My Sales In the VAT Second Hand Margin Scheme?

The VAT Second Hand Margin Scheme is one of the more complicated VAT schemes available to small businesses in the UK. When trying to decide whether you need to include all your sales in the VAT second hand margin scheme unfortunately the answer is maybe! The first thing you need to remember is that the (more…)

VAT Margin Scheme for Second Hand Goods Businesses

HMRC has designed the VAT Margin Scheme (also nicknamed the ‘Second Hand Goods Scheme’) for businesses who buy goods from individuals who are not VAT registered but are VAT registered themselves. This can bring real benefits to VAT registered businesses who trade on the internet using their own websites or platforms such as eBay & Etsy (more…)