selling item purchased from non businesses

[lukas]

Hi,

I'd like to start selling refurbished laptops.
So I'm buying broken laptop, fixing it and selling with profit.
Now, how to proof cost of laptop if it was purchased from private person and I'm selling it as limited company registered for VAT?

Thanks for help

[Williams lester]

Have a look here, http://www.hmrc.gov.uk/vat/start/schemes/margin.htm

[lukas]

thanks for the link, now I know all I need about it. I have one more question. How to do it in sage? Because in margin scheme my invoices have to be vat zero rated it will show me wrong VAT balance at the end. How can I fix that.

[RAL]

You need to keep records if you are using margin scheme. You need to work out your margin so you need to calcualte vat using vat fraction. Once you calculated vat payable then you need to do a journal in sage.

[lukas]

Someone did this before?

[RAL]

Someone did this before?

Do you mean margin scheme? or What?

[lukas]

main scheme and sage

[RAL]

main scheme and sage

Yes, I have done on sage.

[lukas]

ok
thanks for help RAL.