Margin Scheme VAT

[mlambert]

Hi
As a used car retailer, I pay margin VAT on the profit of my vehicle sales.
I am looking to switch to QuickFile but can not find anywhere to account for margin VAT

[QFMathew]

Hi @mlambert

It’s not native supported, but it is possible to record this.

My colleagues post below may be of some help with this:
VAT Second Hand Margin Scheme

[mlambert]

Unfortunately that is not the Margin Scheme VAT, it is purely differentiating between a VAT and non-VAT item
The VAT amount I pay is the 20% content of the difference between what I pay for an item and what I sell it for. I do not charge VAT on a margin sale but I do need to pay the margin VAT on my VAT return

[QFMathew]

Hi @mlambert

Because there’s no built-in way of dealing with this, it’s going to be a workaround. But you could, for example, override the VAT amount with the actual VAT amount, and just hide the VAT on the invoice you present to your customer.

I think what may be best is if we leave this topic open for a while, and perhaps another user who does this with QuickFile can suggest how they do it.

[mlambert]

Unfortunately your suggestion alters the net sales amount or the gross amount, depending on which way you deal with it.
I could add an adjustment on the VAT return itself?

[QFMathew]

@mlambert

I could add an adjustment on the VAT return itself?

That would certainly work. When you produce the VAT return you can download a list of calculations to help you achieve this.

If you’re just investigating whether QuickFile will be suitable for you at the moment, you’re welcome to set up an account and give it a go. No data is sent to HMRC unless it’s set up and enabled for that return (just ensure it’s disabled so it’s not sent)