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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5208
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am starting a business and will be selling second hand

Customer Question

Hi, I am starting a business and will be selling second hand goods. I will be accounting for VAT on the Margin Scheme. I want to know how to set this up as it states on the HMRC site that you do not need to be registered for VAT to do this?
Should I still register for VAT so I have a VAT number?
Submitted: 2 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 months ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Expert:  taxadvisor.uk replied 2 months ago.

Thank you for your question.

You need to register for VAT if you think your turnover will exceed the threshold set for VAT registration.

Without registration, you won't be able to file file any VAT Returns.

HMRC site states - "How to start -

You can start using a margin scheme at any time by keeping the correct records, and then reporting it on your VAT return. You don’t have to register."

You don't have to register for Margin scheme as this is an optional scheme.

More information on this is covered on VAT Notice 718 here

https://www.gov.uk/government/publications/vat-notice-718-the-vat-margin-scheme-and-global-accounting/vat-notice-718-the-vat-margin-scheme-and-global-accounting

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Expert:  taxadvisor.uk replied 2 months ago.

Hi there

Just checking to see if you need further clarification/information or have I answered your question.

Many thanks