The VAT Second Hand Margin Scheme applies to any sales and purchases that meet the criteria of the scheme, however you may have paid for additional things which have VAT on them.

You can reclaim VAT you have paid on any business overheads, repairs or accessories you buy just like anyone else who is on the standard VAT scheme.  Just make sure you do not include any of these costs when you work out your second hand margin for VAT purposes.

Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.