VAT and van used in business

VAT and van used in business

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Hi,

I have a part time farmer who is registered for VAT.  He had purchased a Van last year on which he did not pay VAT and we are claiming 40% business use for this Van.  He has now sold it  and is wondering if he has to charge VAT.  Without researching it, my feeling is that it should be covered by the 2nd hand margin scheme and assuming it is a loss  and all paperwork requirements are adhered to then no VAT will be due on the disposal.  Is this correct?  Also I think we are ok to claim back the business use proportion of  VAT on servicing work done on the van  - isn't this correct?

Thanks.

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By Cloudcounter
29th Mar 2012 08:40

Correct

It's under the margin scheme and no output tax is available

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