We buy and sell vehichles and i was wondering if there is a way you can use the margin scheme. when buying from private sellers we do not pay them V.A.T however we charge V.A.T when selling them again so we only pay V.A.T on the profit. Is there a way that we can adjust it so that we dont get charged v.a.t on the whole amount. thanks
Hello Tess,
Solar Accounts is not designed to work with the VAT margin scheme for second-hand goods. However, you can manually 'override' the VAT calculation that it makes. To do this, click the VAT link in the invoice window (below the subtotal field) then click 'Yes' and enter VAT amounts directly on each invoice line.
Note also that you cannot give the invoices produced by Solar Accounts to your customer - you must produce separate invoices which don't show VAT. See 'Record-keeping when using a margin scheme' on this page for details:
http://www.hmrc.gov.uk/vat/start/schemes/margin.htm
Regards,
