½Û×ÓÊÓƵ

Margin scheme ― agents and pawnbrokers

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Margin scheme ― agents and pawnbrokers

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
imgtext

This guidance note provides an overview of the margin scheme rules that apply to agents and pawnbrokers. If the business selling the second hand goods via an auction then please see the Margin scheme ― auctioneers guidance note.

This note should be read in conjunction with the Margin schemes - overview and Operating the margin scheme guidance notes.

Agents

Agents act on behalf of other dealers or private individuals in arranging the sale. They usually obtain payment by either retaining a percentage of the selling price or making a separate charge to the seller.

The VAT treatment will depend upon whether the agent is acting as a disclosed or undisclosed agent, with there being a little more complexity for undisclosed agents.

Please see the Supply and consideration ― agents, agency and principals guidance note for more information on the VAT treatment of supplies made by agents more generally.

Disclosed agent

A business acts as a disclosed agent when the customer is aware of the identity of the party actually selling the goods.

A

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by

Popular Articles

Payment of tax due under self assessment

Payment of tax due under self assessmentNormal due dateIndividuals are usually required to pay any outstanding income tax, Class 2 and Class 4 national insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2025 for the 2023/24 tax year).

14 Jul 2020 12:52 | Produced by Tolley Read more Read more

Simple assessments

Simple assessmentsFrom 2016/17 onwards, HMRC has the power to make a ‘simple assessment’ of the taxpayer’s income tax and / or capital gains tax liability outside of the self assessment system. As HMRC already receives significant amounts of information on the income received and tax paid by

14 Jul 2020 13:40 | Produced by Tolley Read more Read more

Corporate interest restriction ― administrative aspects

Corporate interest restriction ― administrative aspectsThe corporate interest restriction (CIR) regime has some specific administrative rules in addition to the general administrative requirements for corporation tax returns. This guidance note does not include commentary on provisions that are

14 Jul 2020 11:19 | Produced by Tolley Read more Read more