VAT on scrap?

Kidds

Member
Horticulture
What scrap am I meant to charge VAT on?
Is it as simple as anything I reclaimed VAT on when purchased has to be charged when sold and if I didn't reclaim VAT at purchase I don't charge it?
 

Kidds

Member
Horticulture
Thank you for the replies. I know how to charge the VAT to the scrap man, and how to issue the invoice etc that bit is fine.
The bit I don't know is what to charge VAT on. Charge it on all of it, just what I claimed VAT back on or something else?
For example, I bought a second hand car/jeep for work purposes but didn't pay any VAT on it. When I scrap it am I supposed to charge VAT?
I also bought a used engine that I did pay VAT on but didn't claim it back. Do I charge it on that when I scrap it?

Or am I just over complicating it and as long as I don't weigh too much in just keep quiet about the whole thing.
 

Kidds

Member
Horticulture
A trawl of the internet suggests that as a VAT registered business I should be charging VAT on all income. I assume scrap is not zero rated so will just charge on all of it. Scrap man is fine with it, just want to make sure accountant and VAT man are.
 
Regardless if you purchased something without vat if its part of the farm business then when you resell it you must charge vat on top unless its zero rated like hay and straw or feeds..So for your scrap charge vat on the total price at the end
 
Location
East Mids
Ordinary car that you didn't claim input VAT on, no need for VAT on scrap. Almost everything else there will be VAT on assuming you are VAT registered, (including a landrover/crew cab pickup etc) It's the vendor who has the responsibility to declare it, not the scrappy.
 

Dry Rot

Member
Livestock Farmer
OK, so I buy an old car for use in the farm for £100 plus VAT which I reclaim. Then I sell it to the scrap man for £50. Do I charge VAT or claim back VAT on the £50 loss?
 
Location
East Mids
OK, so I buy an old car for use in the farm for £100 plus VAT which I reclaim. Then I sell it to the scrap man for £50. Do I charge VAT or claim back VAT on the £50 loss?
just being pedantic but most cars other than the 4wd type do not have VAT reclaimed on them, unless you are a garage/car dealer! Anyway how can you charge VAT on a loss? You would be charging Output VAT. which is
a sales tax, the scrappy pays you £50 + VAT and then you have to pay the VAT over to HMRC, same as selling any other standard rated item.
 

Kidds

Member
Horticulture
the good old days when man hole, roadsigns, field gates and any machine you left parked in a gate way went missing you mean !!

best thing they did was stop them paying cash, it just encourages theiving
Yesterday on facebook a guy posted a pic of an old tractor he had seen in the scrapyard. Said it was a shame as it didn't look too bad.
Next guy posts saying he hoped it wasn't the one that was nicked a day or two earlier.
Next post says the owner had hurried down there only to find it was already crushed.

This was a big firm, EMR. Nothing has changed at all.
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
Yesterday on facebook a guy posted a pic of an old tractor he had seen in the scrapyard. Said it was a shame as it didn't look too bad.
Next guy posts saying he hoped it wasn't the one that was nicked a day or two earlier.
Next post says the owner had hurried down there only to find it was already crushed.

This was a big firm, EMR. Nothing has changed at all.

what has changed is that the money is traceable and if the police do their job it should lead them to the thief

so a lot has changed IMO
 

caveman

Member
Location
East Sussex.
Save all your ex household metal cars etc and take the missus with her shotgun licence when you weigh it in. Let her have the cheque with no vat or swap the stuff for an upgrade.
 

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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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