The Margin Scheme is a special VAT scheme that can be used by businesses that sell second-hand goods. The scheme allows businesses to only charge VAT on the difference between the purchase price and the selling price of the goods. This can result in a lower overall price for the customer.

Benefits to the Customer

There are a number of benefits to using the scheme for customers:

• You can save money on VAT. The Scheme can save you money on VAT, as businesses only have to charge VAT on the margin.
• You can get a better deal on second-hand goods. Businesses that use the Scheme are often able to offer lower prices on second-hand goods. This is because they do not have to factor in the full amount of VAT.
• It is easier to compare prices. When businesses use the Scheme, they are not allowed to display how much VAT they have included in the price of the goods. This makes it easier for customers to compare prices between different businesses.

Which Products are in the Margin Scheme?

Gold is not in the Margin Scheme as it is not subject to VAT in the UK. All the other metals that we sell – palladium, platinum, rhodium and silver are subject to VAT, so can benefit from the Scheme.

For more information read our article – ‘What Is The Margin Scheme’