VAT Margin Scheme Second Hand Cars

Please can I check on calculating the margin on second hand car. My understanding is its Sales Price - less Purchase Price. Purchase price is the price paid for the car and not to include any repairs made to get the car in a sale able condition , including a car for example. Thank you

Hi,
This would be the correct calculation.
It is the sales price minus the purchase price.You wouldn't include the price of repairs in the purchase price but you can look at recovering the VAT on these costs as overheads.
Please see the guidance below:
How to work out the margin
Thankyou.

Many thanks, this is what I thought, but best to make sure.