Trainer/Clothes Reselling - Second Hand Goods Margin Scheme

Hi, I am new to VAT and have been looking into the second hand goods margin scheme and have noticed certain companies are using this margin scheme for new and unworn (deadstock) goods that are 'second hand' by definition that they had a previous owner. This would be an extremely useful scheme for my business as around 1/3 of the items I buy are from individuals that aren't VAT registered and so I cannot reclaim VAT on the purchases. The Margin scheme would allow me to only charge VAT on the difference at 16.66%. Is this a legitimate way of using the second hand margin scheme? I would like to ensure I am using the scheme correctly otherwise I will be best avoiding buying from individuals or non VAT registered businesses in order to scale. Thanks in advance!

Hi,

If you buy goods from members of the public and sell these goods on, then you could look at selling these goods on the margin scheme and account for VAT on your profit margin.

VAT margin schemes

Thank you.