We do not have official support for the VAT Margin scheme, however, it is possible to use this scheme while on a standard VAT scheme in Clear Books. The example below should help explain how you can process transactions to appear correctly on the VAT return.


I buy a used item with no VAT for £600 and sell it for £660.

The VAT should be calculated as:


The difference between sale and purchase: £660 - £600 = £60

VAT on the difference: 16.67% * 60 = £10

In Clear Books


Enter the £600 cost as a bill using 0% VAT, to get it into box 7.


  • Head to Purchases > Bills

  • Click on the Create new Bill button

  • Enter bill with 0% VAT and Gross as £600



Enter the sales invoice by entering the gross £660 and a manual £10 VAT.


  • Head to Sales > Invoices

  • Click on the Create a new invoice button

  • Enter invoice with Gross 660 and a manual VAT rate of 10


Sales Invoice


When you sell something you plan to claim for under a VAT margin scheme, you must give the buyer an invoice that includes:


any of the following: ‘margin scheme - second hand goods’, ‘margin scheme - works of art’ or ‘margin scheme - collectors’ items and antiques’


In Clear Books - you could put this text in the Summary.