ibbo86
20th March 2010, 10:51
I deal in second hand cars and would like to use the VAT second-hand margin scheme.
The trouble is my business should have been registered for VAT from November last year but I didn't register until last month. I have my first VAT return to do but as I don't have the correct records ie. invoices stating 'VAT second-hand margin scheme applies' and my VAT no. I don't think I can use the scheme. Does anyone know if I send out duplicate invoices to the customer with the correct wording whether this would be acceptable to HMRC so magrin scheme can be applied?
If my VAT is calculated in the normal way, I will probably owe HMRC all my profit.
Also, can VAT be re-claimed on all purchases when using the margin scheme.
Any advise would be gratefully received!
The trouble is my business should have been registered for VAT from November last year but I didn't register until last month. I have my first VAT return to do but as I don't have the correct records ie. invoices stating 'VAT second-hand margin scheme applies' and my VAT no. I don't think I can use the scheme. Does anyone know if I send out duplicate invoices to the customer with the correct wording whether this would be acceptable to HMRC so magrin scheme can be applied?
If my VAT is calculated in the normal way, I will probably owe HMRC all my profit.
Also, can VAT be re-claimed on all purchases when using the margin scheme.
Any advise would be gratefully received!