Margin Scheme

Discussion in 'Accounts & Finance' started by splodge2001, May 17, 2019.

  1. splodge2001

    splodge2001 UKBF Contributor Free Member

    57 1
    I am so confused about what is allowed in the purchase price of an item sold on margin.

    I buy second hand items at auction here is a concrete example

    Hammer: £700
    Buyers Premium: £168
    Buyers Charges: £21
    VAT on Buyers Charges: £4.20

    What is the cost of the item for margin purposes. Is it £868, £889 or £893.2?

    If instead of buyers charges the same amount was postage + vat on postage is there a difference. The HMRC website says that all normal costs related to purchase can be included in the purchase price but I don't know what happens when some of those costs are subject to VAT.

    Thanks
     
    Posted: May 17, 2019 By: splodge2001 Member since: Jan 8, 2013
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    13,755 1,507
    What do you have to pay to get the item?
     
    Posted: May 17, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. splodge2001

    splodge2001 UKBF Contributor Free Member

    57 1
    The total £893.20
     
    Posted: May 17, 2019 By: splodge2001 Member since: Jan 8, 2013
    #3
  4. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,486 750