VAT on resale of PC equipment

[Bobbyj]

Hi All,

A company that buys PC equipment, refurbs them and then resells it, pressumably is subject to VAT as any other business? Also, has anyone had any experience on the board of ascertaining a "correct" FR VAT scheme %, I have been applying a code which i think is higher than it needs to be, but wanted to over pay rather than under pay, given that its soi difficult to contact HMRC via phone and post, any suggestions of the best way to approach this? Maybe wait for the next routine VAT inspection (I think it is due within 6-12 months!)

[robbob]

Hello Bobbyj

pressumably is subject to VAT as any other business?

Yes although as far as vat is concerned perhaps some services can come within the second hand margin scheme if you purchase second hand items and sell them on.
Although you will need to check how this interacts with the flat rate if you want to go down this route.
http://www.hmrc.gov.uk/vat/start/schemes/margin.htm

has anyone had any experience on the board of ascertaining a "correct" FR VAT scheme %

I would say the following is probably the most appropriate flat rate - although its always very hard to comment without knowing the exact turnover splits between repairs and other bits and bobs.

"Computer repair services 9.5" Flat Rate
http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm