Scrap metal dealing and VAT
One very confused person needs help!
I have a client who is about to start dealing in scrap metals. He will buy scrap items from both private individuals and businesses and sell onto another main scrap dealer for profit. I have called HMRC to clarify my understanding and I am actually now more confused.
I had hoped to use the global accounting scheme for VAT where VAT is paid simply on the difference between the purchase and selling price - as no individual item of scrap is worth over £500 this should not be a problem.
However HMRC have indicated that this would be OK when dealing with non-vatable individuals / businesses this would not be the case if scrap was purchased from another vatable business and the a VAT invoice would be issued by the seller and that this scrap would need to be tracked seperatelty when sold to the main dealer - thus possiblty becoming an admin nightmare.
Has anyone experience of this sector and the VAT treatment?
ALso I understand there are moves to change the suppy of VAT onto a reverse change basis - possibly on May 1st 2011.
- Vat 256 7
- SA online - 4 hour limit 1,259 13
- Are there Special Rules for Agencies? 334 7
- Client RTI Shows payments not his 106 2
- Alerting clients versus walking away from clients 410 6
- Why should I retain membership? 2,687 46
- Recharge for private use of a company car 175 3
- Funding Circle Servicing Fee 137 2
- Surprise visit from HMRC! 2,473 18
- CT/CIS offset 125 2
- Statutory accounts, current company address, or one that was correct at EOY? 182 4
- Trade name 183 3
- Musician - Allowable Travel expenses 132 1
- New business - journal entries 314 20
- B2B vat in the EU 119 2
- Stamp duty on multiple property transaction 314 18
- VAT on deposits 207 2
- VAT clearance for determining the correct rate to apply 137 1
- Annual tax investigation cover fee? 414 12
- option to tax 205 1
- Auto enrolment excuses 802
- Feedback on accounts production software for IFRS 710
- Add T&Cs to Sales Order in Sage 390
- Social investment tax relief 208
- Digita Hosted Software 202
- Call Centre Data Costs 193
- Buying goods in US and selling them to company in US 162
- Travel costs and contractors 152
- Problems with Sage 50 Payroll v21(2015) 147
- Certificates of tax deposit 139