Vat help on a machine

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Member
Livestock Farmer
Location
NZ
Sell it for cash, hide the cash under your bed for when the zombie appocalypse/nuclear holocaust comes and the ATMs don't work anymore.

Or talk to your accountant.
 

farmerdan7618

Member
Livestock Farmer
Location
Somerset
This may be one for @farmerdan7618

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Thank you @Boysground

There is a choice on whether VAT is charged. The default position is to charge VAT, the option is whether to use a VAT margin scheme provided you meet the conditions.

Unless you are a dealer, it is borderline on meeting the conditions for selling second hand goods, as the trailer was bought for use rather than sale.

If it's going back as a trade in, just make your life simpler and charge VAT, the rules for the margin scheme are horrendous and you'll probably fall foul of them somewhere. They are here for reference (notice withdrawn, but the rules are still there).
 

Sebastian77

Member
Mixed Farmer
Location
Nottingham
Recently sold a combine that was bought with Cash from a neighbour who had retired and selling up many years ago, was told to charge VAT on the sale by accountant.

This is different though, trailer is owned personally, not by the VAT registered business, so should be sold separately with no VAT. You couldn't even part-ex it as part of the deal without firstly declaring it as capital gains in your business books.
 

Landrover

Member
Recently sold a combine that was bought with Cash from a neighbour who had retired and selling up many years ago, was told to charge VAT on the sale by accountant.

This is different though, trailer is owned personally, not by the VAT registered business, so should be sold separately with no VAT. You couldn't even part-ex it as part of the deal without firstly declaring it as capital gains in your business books.
I thought I would have to declare it somewhere, as it can't just turn up in the books as part of the deal, where im buying the new trailer from are too "straight" for any dodgy stuff !
 

Sebastian77

Member
Mixed Farmer
Location
Nottingham
Absolutely, otherwise when your books are done you will have money magically appearing from thin air... Which we'd all love to happen, unfortunately the HMRC have a different outlook on it 😂
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
VAT must bee applied to any VAT qualifying goods or services sold if you are a vat registered business

you do not need to add vat to anything sold as an individual that was purchased / owned outside of the business

so imo

sell the old trailer you own without vat - its a private sale - make that clear to a buyer as it also changes his rights re warranty

buy the new one and reclaim the vat

if you put the funds of the old trailer into the business it is capital introduced for eoy accounts
 

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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