The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the margin scheme that can be used by auctioneers. The auctioneers' scheme is a variation of the margin scheme. It allows auctioneers to account for VAT on a margin, the calculation of which involves:
adding to the hammer price the cost of the auctioneer's services charged to the buyer
deducting from the hammer price the cost of the auctioneer's services charged to the seller
VATA 1994, s 50A; VAT (Special Provisions) Order 1995, SI 1995/1268 (as amended); Value Added Tax (Cars) Order 1992, SI 1992/3122; VATA 1994, s 47(2A); De Voil Indirect Tax Service V3.533; VATMARG04000; VAT Notice 718/2
This note should be read in conjunction with the following guidance notes:
Overview of margin schemes
Operating the margin scheme
Global Accounting margin scheme
Margin scheme ― agents and pawnbrokers
If an auctioneer:
invoices in its own name
sells goods that are eligible to be sold under the margin scheme (please note that businesses can only use the scheme to account for sales of air guns if they are registered under the Firearms Act 1968)
The auctioneer has a number of methods that it can use in order to account for VAT due on the sale of these items. These are:
using the auctioneers’ scheme
using the normal margin scheme ― see the Overview of margin schemes guidance note
acting as an undisclosed agent ― see the Margin scheme ― agents and pawnbrokers guidance note
The auctioneers’ margin scheme that has been adapted to deal with the types of sales made by auctioneers. Under the scheme, the VAT due is calculated on a margin which is equal to the value of the services supplied to the buyer and seller using the auction. Therefore, VAT does not need to be accounted on the hammer price of the goods sold.
The following conditions need to be satisfied in order to use the scheme:
the goods must be eligible to be sold under the margin
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
Income and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax 2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting the foreign tax
The corporate interest restriction (CIR) essentially limits the amount of interest expense a company can deduct from its taxable profits if the interest expense is over £2 million. The actual mechanics of the CIR calculation are highly complex (the legislation is over 150 pages long) and are
This guidance note provides an overview of the steps businesses need to take if aspects of their business change, and as a result, they need to notify HMRC about the change.Changes to name and / or addressIf a business changes its name and / or its address then it is required to notify HMRC of the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.