VAT Margin Scheme Calculator
Work out the VAT you owe under the HMRC VAT Margin Scheme. Add one or more items, switch between individual and global accounting, and see your margin, VAT and net profit in real time.
Individual item accounting: VAT is calculated per item. Losses on one item do not offset profits on another.
VAT is calculated at 1/6 of the positive margin, per HMRC VAT Notice 718. Figures here are an estimate — always confirm with your accountant.
How to use this calculator
Add your items
Enter the purchase price and selling price for each eligible item. Add a short description so you can keep track.
Pick an accounting method
Use individual item accounting if you deal with a small number of higher-value items. Use global accounting if you deal in volume, typical for car dealers.
Check your VAT
VAT due = 1/6 of the positive margin. Loss-making items don't reduce your VAT bill under individual accounting.