How we set up a Notting Hill antiques dealer on the VAT Margin Scheme, £8,700 saved
Client D deals in antiques and vintage furniture from a Portobello Road pitch and a small showroom, buying stock from house clearances, auctions and private sellers. As turnover grew past the VAT threshold the previous accountant registered for standard VAT, meaning Client D was paying 20% on the full sale price of items bought VAT-free, a heavy hit on an antiques business.
We moved the business onto the VAT Margin Scheme for second-hand goods, art and antiques. Under the scheme, VAT is due only on the margin (sale price minus purchase price), not the full sale value, exactly right for an antiques business buying from non-VAT-registered sources. We set up the required stock book recording each item and the special invoicing the scheme demands, and corrected the VAT returns.