As a used car dealer, the chances are many of your vehicles are purchased from private owners, which means there is no VAT to claim back. The HMRC’s VAT Margin Scheme was introduced to enable sellers of second-hand cars to account only for the difference between the price paid and the selling price.
But the scheme is not straight forward and there are many special conditions which must be met in order to qualify – including additional record keeping rules for your stock books and invoices.
At SN Bookkeeping, we have worked with countless used car dealers and are experts in the VAT Margin Scheme, so we know all the ins and outs of the process and will make sure your records are kept in accordance with HMRC rules.
There are also special rules you must follow for any vehicles bought or sold under the Margin Scheme during the tax period. We will file your tax return for you on time and error free.