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🧾 VAT Margin Scheme Reports

RepairMinder helps you manage VAT reporting for the UK VAT margin scheme, automatically generating monthly journals and tracking transactions.

What is the VAT Margin Scheme?​

The VAT margin scheme is a way of accounting for VAT on second-hand goods where you only pay VAT on the profit margin rather than the full selling price.

Example:

  • Purchase device for £100
  • Sell for £150
  • Margin: £50
  • VAT payable: £50 × 20/120 = £8.33

This is particularly relevant for:

  • Buyback devices
  • Refurbished stock
  • Trade-in items

Automatic Report Generation​

RepairMinder automatically generates monthly VAT reports:

  1. At month end, report is generated
  2. All qualifying transactions included
  3. Margins calculated automatically
  4. VAT amounts computed

Viewing VAT Reports​

  1. Go to Reports → VAT Reports
  2. Select the month
  3. View the report summary

Report Contents​

SectionDescription
SummaryTotal sales, purchases, margins, VAT
TransactionsIndividual item breakdown
CategoriesBreakdown by device type
AdjustmentsAny manual adjustments

Understanding the Report​

Gross Margin Calculation​

Selling Price - Purchase Price = Gross Margin

VAT on Margin​

Gross Margin × (VAT Rate / (100 + VAT Rate)) = VAT Due

For 20% VAT:

Margin × 20/120 = VAT Due

Negative Margins​

If you sell below purchase price:

  • No VAT due on that item
  • Loss recorded
  • Included in report for records

Report Status​

StatusMeaning
DraftMonth not yet complete
GeneratedMonth complete, report created
ReviewedManually reviewed
SubmittedSubmitted to HMRC
LockedCannot be modified

Locking Reports​

After submitting to HMRC:

  1. Open the report
  2. Click Lock Report
  3. Report becomes read-only

This prevents accidental changes to submitted data.

Unlocking for Corrections​

If you need to make corrections:

  1. Open the locked report
  2. Click Unlock
  3. Make corrections
  4. Re-lock and note amendments

Exporting Reports​

Export for your accountant or HMRC:

  1. Open the report
  2. Click Export
  3. Choose format:
    • PDF (printable)
    • CSV (spreadsheet)
    • Excel (detailed)
  4. Download

Report Versions​

RepairMinder keeps versions of each report:

  • Original generation
  • Each amendment
  • Full audit trail

View versions:

  1. Open the report
  2. Click Versions
  3. Compare changes

Configuring VAT Settings​

Set up your VAT configuration:

  1. Go to Settings → Company
  2. Find VAT Settings
  3. Configure:
    • VAT number
    • VAT rate
    • Scheme type (margin/standard)
    • Reporting period

Items Included​

The report includes sales of:

  • ✅ Buyback devices sold
  • ✅ Refurbished devices
  • ✅ Trade-in devices resold
  • ❌ New products (standard VAT)
  • ❌ Repair services (different VAT treatment)

Troubleshooting​

Missing Transactions​

If a sale isn't in the report:

  • Check the sale date
  • Verify it's a margin scheme item
  • Check the order type

Incorrect Margin​

If margin looks wrong:

  • Verify purchase price
  • Check selling price
  • Look for adjustments

Important Notes​

⚠️ Disclaimer: This documentation provides general guidance. Always consult with a qualified accountant for VAT compliance advice.

Next Steps​