The problem with flat rate for me is the value of each sale. it's great for low value sales. Also it's good if you have slot of Vat-able purchases. Mostly mine are private sellers so that's no good as there is no vat to reclaim
Flat rate on motor category (which is most suited to selling used boats) is around 8 or 12% on each sale price.
That's say £1,000 on a £10k sale which potentially only gave me say £1000 profit for arguments sake (not my figures just as an example). That means no profit.
I'm on the secondhand goods margin scheme so I pay 20% of my "margin" only. So if my same 10k sale yields £1,000 profit (again not my figures just easy example) that's only £200 VAT on the same sale. It has it's draw-backs though. For example if you buy a boat for £2,000 and spend £7,000 enhancing it with a new motor for example then sell it for £10,000 your margin is still £8,000 not the £,1000 profit you've actually made. The £7,000 you spent would have to be re-claimed via a separate VAT input assuming their is VAT to recover. If not you lose out on your margin.
My return takes no time either but im keeping good records too and seperating my input vat into sections which helps. Ive not been asked by HMRC to make them available for inspection yet but if they do im confident they can make sense of it all. They run free courses which I keep meaning to book onto just to see how better I could make it.
It's a minefield I tell ya. Avoid avoid aviod.
Peter ~ Boatsandoutboards4sale ~ firstname.lastname@example.org
~ 07930 421007