Illustrative estimate. Check the rate and scheme eligibility for your transaction. No amounts are sent by this calculator.
Use purchase and selling prices
Enter the purchase price and selling price for one eligible item. For this standard-rate illustration, VAT on a positive margin is one sixth of the difference. Check eligibility before using the result; not every used item or purchase qualifies.
Worked margin example
Buy an eligible item for £600 and sell it for £900. The difference is £300, and £300 ÷ 6 gives £50 VAT. The margin after that VAT is £250. That figure is still before repairs, advertising, overheads and other costs.
Loss-making sale
If the purchase price is greater than the selling price, this single-item estimate shows zero VAT and a negative margin. It does not turn a loss into a VAT refund. It also does not perform global accounting or offset one item’s loss against another item’s gain.
Keep scheme records
Retain the purchase evidence and sale details that support your scheme treatment. Do not substitute a business-profit calculation for the scheme’s definition of the margin. Different rules can apply to vehicles, auctioneers and other specialist transactions; follow the applicable HMRC guidance.
Quick answer
Can I use the result without saving an account?
Yes. Calculations run in your browser. Copy the figures into your own records; refreshing the page resets the inputs.
Keep learning
Official sources
Sources checked: 2026-09-26. Check the official guidance for later changes.
Educational information and estimates. These tools do not submit VAT returns or determine the treatment of a specific transaction.