Do I have to charge VAT

[treevolution]

Hopefully someone will be able to help. 

 

I'm selling my 15 year old Cabstar which when I brought it, I was not VAT registered and paid the full price. 

 

Even though I'm now VAT it was past the four year point from which I could claim the VAT on the truck. 

 

I was lead to believe that because I paid the VAT and never claim it back, that when I sell the truck I will not have to charge VAT on top. 

 

I'm asking here as I have been given conflicting advise from two partys. 

 

Thanks in advance. 

[Justme]

My understanding is that as long as the selling price is less than the purchase price then no VAT is applied. Look up VAT margin scheme. Basically if you paid £10k no vat & sole for £12k you would charge vat at 16.67% on the £2k not all of it but the buyer cant claim it back.

[Justme]

VAT margin schemes: Overview - GOV.UK

WWW.GOV.UK

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How to use VAT margin schemes - records you need to keep, invoicing and VAT return reporting

 

[Mick Dempsey]

I had similar with a chipper.

 

Yes you have to charge VAT, you’re a VAT registered company and you must charge VAT on your goods and services.

 

If I’m wrong, fair enough.

[swinny]

31 minutes ago, Mick Dempsey said:

I had similar with a chipper.

 

Yes you have to charge VAT, you’re a VAT registered company and you must charge VAT on your goods and services.

 

If I’m wrong, fair enough.

Had this recently.... even rang hmrc up as didn't want to believe my accountant lol 😆 

 

Your vat reg, charge vat. 

[treevolution]

Thanks guys for the replying. 

 

Looks like its plus VAT 

[monkeybusiness]

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Edited July 5, 2022 by monkeybusiness

[Dan Maynard]

I clicked through, I don't think you can use that VAT margin scheme. There are specific rules for secondhand vehicles and they don't apply if you have paid VAT on the vehicle when you bought it.

https://www.gov.uk/guidance/using-the-vat-margin-scheme-for-second-hand-vehicles

 

When you say conflicting information from two different people, were they both accountants?

[treevolution]

6 minutes ago, Dan Maynard said:

I clicked through, I don't think you can use that VAT margin scheme. There are specific rules for secondhand vehicles and they don't apply if you have paid VAT on the vehicle when you bought it.

https://www.gov.uk/guidance/using-the-vat-margin-scheme-for-second-hand-vehicles

 

When you say conflicting information from two different people, were they both accountants?

Both were not accountants but since posting my accountant has come back to me saying the same thing. 

 

Will just take a hit on the money I get for it. 

 

Had it for 15 years so doesn't owe me anything and its worth more then before covid.

 

Would have kept it if it was not for the ulez expanding next August 

[scbk]

20 minutes ago, treevolution said:

Both were not accountants but since posting my accountant has come back to me saying the same thing. 

 

Will just take a hit on the money I get for it. 

 

Had it for 15 years so doesn't owe me anything and its worth more then before covid.

 

Would have kept it if it was not for the ulez expanding next August 

Just out of interest, what's the details on it, and what's it worth now?