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VAT and Secondhand Cars

VAT and Secondhand Cars

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Does anyone know of an accounts package that can cope with the vat aspects of the second hand car dealers scheme?

If not, I suppose one could use any "normal" package and enter the vat element based on manual calculations. It would need to cope with vat on the sale profit plus normal sales if outside the scheme. Input vat would also need to be reviewed.

Should one keep a spreadsheet as a stock book, for example, as one needs to match up cost price and input vat against sale price and output vat? This would help in deciding on the vat treatment and the calculations for the accounts.

Any advice would be welcome as my current clients who deal in cars are currently below the vat threshold.

Stephen Quay

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By Anonymous
16th Mar 2006 08:49

Free advice from HMRC
On 21st March 2006 at the National Motorcycle Museum (at Bicknehill in Solihull) there is a "Business Advice Open Day".

One of the talks is "Do you buy, sell or import cars" and the description of the talk includes "you'll be shown how to maximise the benefits of using the most common motor dealer electronic accounting system".

I've recently pointed a motor dealer client in the direction of this course as he too needs something easier to use and more functional than an Excel based stockbook and cashbook.

Contact details for this course are :-

Business Liaison Team, HMRC
0121 697 4065
and
www.businessadviceday.co.uk

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By timmcarr
15th Mar 2006 21:55

2 line postings
We keep the books for a car restorer who also sells cars. Part of the VAT secondhand scheme requirements is that a stockbook is kept for every item sold under the scheme showing cost and sales price, together with other information. We keep the client's records on Sage. When posting the sales transaction we post it as 2 lines. The first equal to the cost price with zero VAT. The second line equal to the profit element (including VAT) and use the Calc Net button to work out the VAT in the profit.

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