Commentary

V7.241 Retail and margin schemes—introduction

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.241 Retail and margin schemes—introduction

Part V7 Tax planning | Commentary

Retail schemes and second-hand margin schemes

V7.241 Retail and margin schemes—introduction

There are certain businesses that are allowed to calculate their output tax using a special method approved by HMRC – the main example being retailers. It would be very difficult for a retailer dealing mainly in small cash transactions to issue a tax invoice for every sale – a retailer is therefore allowed to use one of five different retail schemes.

Equally, many businesses that deal in second-hand goods (eg car traders, antique dealers) would be at a disadvantage under normal VAT accounting rules (ie output tax due on

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