Good day. I hope this is a question that I can ask in here for some assistance, if not please let me know and if you could direct me to the correct forum for this. The margin VAT scheme for second-hand vehicles is used to account for VAT on the difference between the price you pay for a second-hand vehicle and the price you sell it for, instead of the full selling price of each vehicle. The VAT is calculated by deducting the purchase price from the selling price to work out the gross margin, then multiplying the gross margin by 1/6. HMRC guidance explains the purchase price as everything you pay for the vehicle and the selling price as everything you receive for the vehicle, including payments for incidental expenses directly linked to the sale. Where a second-hand car dealer purchases a second-hand vehicle, repairs the vehicle to make it saleable, can the cost of repairing the vehicle be considered as incidental expenses directly linked to the sale? Can these costs be included as part of the selling price when calculating the margin? If so, I assume that these costs being included will reduce the selling price? Please let me know. Thank you.