Individual items that you have purchased for over £500 each cannot be included in the global accounting scheme (but you can use the VAT margin scheme for these items providing you meet this schemes criteria). However there may be scenarios where you have bought collections of goods or combined items to resale where the individual value is under £500.
HMRC has a really nice table showing whether you can or can’t include items of over £500:
|you split collections of items, such as stamp collections, and either sell the items separately, or use them to form other collections||you can account for those sales under Global Accounting, provided all the items are eligible.|
|you purchase an eligible item for £500 or more, and the item is made up of several components valued at less than £500, but you sell the component items individually|
|(For example, you purchase a tea set for £600 and you sell the cups and saucers individually for £50 each.)||you can account for the sales under Global Accounting.|
|you purchase an eligible item for £500 or more, and the item is made up of several components valued at less than £500, and you sell the item in the same state as it was purchased (For example, you purchase the tea set for £600, but you sell it on as a tea set.)||you can not account for the sale under Global Accounting. You may account for the sale under the Margin Scheme, provided you can meet the record keeping requirements.|
|you combine two or more items to produce only one item for resale, (For example, you use one item as a spare part for another.)||you can account for the sale under Global Accounting.|
|you buy eligible items and use them to produce something which is not eligible,|
|(For example, you buy second-hand fabrics and trimmings and make them into cushion covers.)||you can not account for the sale under either Global Accounting or the Margin Scheme , you must sell the item under the normal rules and account for VAT on the full selling price.|
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