Hello! I was wondering if anyone had the knowledge to help me answer what should be a simple question that I am receiving conflicting answer for from various people. I currently sell second hand clothing and I am on the flat rate scheme, I want to go over to the margin scheme but firstly to know weather it is beneficial to me I need to answer this question. When working out the 16.67% Margin for instance which of these two situations would I work it out from? A. Purchase price £50 Sale price £100 Profit £50 - Margin Vat worked out on £50 or B. Purchase Price £50 Sale Price £100 Profit £50 Out goings - 10% app fee (from Sale total) - 4% PayPal fee (from sale total Margin vat worked out on £36 (profit after out goings) Any help is much appreciated thank you!!