GadgetRepairs
18th January 2010, 13:43
Hi,
I'm hoping someone can help clarify a few details about the Global Accounting VAT margin scheme and whether it would be suitable for the scenarios below.
The trader in the examples is a VAT registered sole trader.
************
Scenario A:
Trader buy a faulty laptop (it has a broken LCD) from a member of the public for £50.
Trader then takes the laptop to bits and sells the DVD drive for £10, motherboard for £50, memory for £20 and 5 internal cables for £2 each. The faulty screen and most of the plastic casing is discarded.
************
Scenario B:
Trader buys 5 second hand games from the public for £15 each and trades them in to another second hand shop for £20 each in store credit.
Trader buys a second hand mobile phone for £100 with the store credit. The shop sells the phone under the Global Accounting scheme.
Trader sends the handset to a mobile phone recycling website and receives a £100 gift voucher for a high street retailer.
Trader sells the charger, 2 cables and the box separately for £5 each.
************
What records need to be kept and what invoices need to be issued? Does an invoice need to exist for the initial purchase of the laptop and the games from the public?
Thanks in advance!
I'm hoping someone can help clarify a few details about the Global Accounting VAT margin scheme and whether it would be suitable for the scenarios below.
The trader in the examples is a VAT registered sole trader.
************
Scenario A:
Trader buy a faulty laptop (it has a broken LCD) from a member of the public for £50.
Trader then takes the laptop to bits and sells the DVD drive for £10, motherboard for £50, memory for £20 and 5 internal cables for £2 each. The faulty screen and most of the plastic casing is discarded.
************
Scenario B:
Trader buys 5 second hand games from the public for £15 each and trades them in to another second hand shop for £20 each in store credit.
Trader buys a second hand mobile phone for £100 with the store credit. The shop sells the phone under the Global Accounting scheme.
Trader sends the handset to a mobile phone recycling website and receives a £100 gift voucher for a high street retailer.
Trader sells the charger, 2 cables and the box separately for £5 each.
************
What records need to be kept and what invoices need to be issued? Does an invoice need to exist for the initial purchase of the laptop and the games from the public?
Thanks in advance!