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.