Just busy changing a trailer, and as part of the deal I was going to trade in a bale trailer that belongs to me, not the business, I bought it with no vat on as the guy wasn't vat registered, before I speak to the accountant anyone any advice on weather I can do this, it's not on the books. I have someone lined up for it if I can't trade it in but I would rather do that
Vat help on a machine
- Thread starter Landrover
- Start date
- Location
- Northumberland
In a straightforward part ex suppose sale of your trailer would be treated as capital introduced in your business accounts
or
ask the dealer to pay you for the trailer & invoice the business for the new one
or
ask the dealer to pay you for the trailer & invoice the business for the new one
- Location
- Scottish Highlands
Get the two transactions on separate invoices to make it cleaner, and get them to raise a cheque for the trade in whilst your business pays top dollar for the new item.
The trade in shouldn’t have vat added if you didn’t pay it when you bought it.
I’d be banking the trade in cheque to a personal account too - it’s nothing to do with your business and should be kept 100% separate.
The trade in shouldn’t have vat added if you didn’t pay it when you bought it.
I’d be banking the trade in cheque to a personal account too - it’s nothing to do with your business and should be kept 100% separate.
Dave W
Member
- Location
- chesterfield
Do yourself a favour. Phone your accountant because 80% of the replies you'll get will be wrong.
Are you sure about that
- Location
- Scottish Highlands
Yes. Went through similar a few years ago on a trailer I'd bought from ebay and then sold on later.
Nearly
Member
- Location
- North of York
That's 96 when you add the vat.
Dave W
Member
- Location
- chesterfield
Not unless you bought it without vat and selling it on the margin scheme
Rs chunk
Member
As far as my knowledge goes. If you purchased the trailer with money from your vat registered company then you must sell it plus vat Regardless of it having vat or not when purchased, it would be different if you had paid for it cash it would then be personally yours and not belonging to your business then you could sell it with out vat
Nearly
Member
- Location
- North of York
Delivered?
- Location
- Scottish Highlands
That wasn’t my understanding.
ACEngineering
Member
- Location
- Oxon
If your vat registered and is sold through the business then you have to charge vat on it.
It really hinges on whether or not the trailer was bought by the business or privately regardless if he paid vat on the purchase or not.
Keep it simple sell it to someone you’ve got lined up and keep the two transactions separate
- Location
- South Wales UK
Yes sell no vat on fb market place for cash like everyone and get better deal on new trailer direct.
- Location
- Scottish Highlands
Again, not my understanding. If there was a profit, there may be a margin to pay, but that would be the most.
If it’s private (as indicated) and trading in that isn’t the main income, it’s probably not liable for tax either which would be another good reason to keep transactions separate.
- Location
- Bedfordshire
I wouldn't assume the accountant will be correct either.
ACEngineering
Member
- Location
- Oxon
The guy wants to trade it in to a dealer, the dealer is going to be vat registered so really it doesn't benefit anyone if theres vat on it or not. But he says it's not part of the business so needs to be sold to dealer separately rather than a trade in to keep it out of the business.
So in which case cause it will be a effectively a private sale he wont need to charge vat or put it through the books. Unless he wants to pay 20% tax on the income at end of tax year which I doubt!
Rs chunk
Member
Maybe I need a new accountant, I just read through the original post and spotted it doesn’t belong to his business anyway so that’s easy enough
Dave W
Member
- Location
- chesterfield
Think I'd trust an accountant long before the tff "experts".
every time there's a vat query you get at least 10 different incorrect conflicting answers
grainboy
Member
- Location
- Bedfordshire
Your bought it privately,
Did you use it in the business , or did it just sit in a shed, ?
I buy and sell, regardless of vat on purchase,
Vat is always charged on sale,
Did you use it in the business , or did it just sit in a shed, ?
I buy and sell, regardless of vat on purchase,
Vat is always charged on sale,