Del Boys and dealers on now

martindow

Some of them are buying and selling (or trying to) but don't really seem to have businesses. I wonder what the couple with the hearse make per hour?

I like the review in the Guardian
http://www.theguardian.com/tv-and-radio/2014/may/22/del-boys-and-dealers-tv-review

soolin

forgotmyname wrote: »

Commission seemed cheap or did they miss the VAT on top?

Commission really can vary. One of my favourite houses only charges 15% inclusive of VAT. My local one I rarely use only charges 10% inclusive of VAT yet another I probably use more often charges 22% inclusive of VAT.

forgotmyname

Blimey... I need to move I think. 17.5% commission + 20% VAT.

Almost half as much again on top of the bid price.

If they charge 15% inc of VAT are they not losing 5%?

nikki1520

AFAIK the auctioneers vat scheme means they account for vat on the commission only, not on the hammer price of the goods

charlies_mum

nikki1520 wrote: »

AFAIK the auctioneers vat scheme means they account for vat on the commission only, not on the hammer price of the goods

Think this is corrrect. If I go to an auction selling new goods, I pay VAT on the hammer price, but not at auctions for antiques / second hand items.

soolin

charlies_mum wrote: »

Think this is corrrect. If I go to an auction selling new goods, I pay VAT on the hammer price, but not at auctions for antiques / second hand items.

Which in fairness is what most of my items are. The one house i use that shows VAT seperately only takes it on the commission.

Oe of the auction houses featured on the programme does the same, but has certain items where VAT is different and they put up a big notice saying how the VAT works on those particular items, and it is mentioned again in the catalogue. I can't remember what it is about though as I haven't bought there for ages, I've only sold for the past couple of years.

forgotmyname

This stuff was all new. Not collected, lost and damaged boxes etc. So maybe why.

Im sure they have the same terms for the antique sale they also hold?

martindow

soolin wrote: »

Which in fairness is what most of my items are. The one house i use that shows VAT seperately only takes it on the commission.

Oe of the auction houses featured on the programme does the same, but has certain items where VAT is different and they put up a big notice saying how the VAT works on those particular items, and it is mentioned again in the catalogue. I can't remember what it is about though as I haven't bought there for ages, I've only sold for the past couple of years.

If a VAT registered business sells at auction then VAT will be charged on the hammer price as well as on the commission. This can easily make the price paid 40% or more over the hammer price. It is more usual that people entering items in auctions are individuals so VAT is only payable on the commission.

I have been to a few auctions held at hotels and other VAT registered businesses that had closed down where people were bidding ridiculous prices - they must have had a shock when they came to pay.

soolin

martindow wrote: »

If a VAT registered business sells at auction then VAT will be charged on the hammer price as well as on the commission. This can easily make the price paid 40% or more over the hammer price. It is more usual that people entering items in auctions are individuals so VAT is only payable on the commission.

I have been to a few auctions held at hotels and other VAT registered businesses that had closed down where people were bidding ridiculous prices - they must have had a shock when they came to pay.

I don't know how they get round it but I have bought from my usual auction houses and have not paid VAT other than that included in the 15% (or whatever) on bankrupt stock from shops and factories. I don't do it very often as it is not my market and it is not the usual stuff those houses carry. However, one of the auctioneers featured on the programme sells mainly bankrupt stock and it is rare to see them put up the notice about additional VAT.

I once helped load a friends car (friend is a loose word, just someone I know from the market) who bought stock from a toy shop that had closed down, she paid the same percentage commission I paid on a tea chest of old books.

RFW

soolin wrote: »

I don't know how they get round it but I have bought from my usual auction houses and have not paid VAT other than that included in the 15% (or whatever) on bankrupt stock from shops and factories. I don't do it very often as it is not my market and it is not the usual stuff those houses carry. However, one of the auctioneers featured on the programme sells mainly bankrupt stock and it is rare to see them put up the notice about additional VAT.

It will vary from auctioneer to auctioneer and also depend on the advice given by the VAT office. When I ran an auction house, we mostly sold new items to traders, we were advised by HMRC and our accountant to charge VAT on everything that was VATable irrespective of whether the vendor was registered or not. Many do it differently to that. Some, incorrectly, charge VAT on zero rated goods, as most people don't know what should and shouldn't have VAT on, they usually get away with it.

There's no auction body in this country, there are a few groups that some auctioneers belong to, but no regulatory body so there is a vast difference up and down the country. I noticed some charging 20% plus VAT buyers' premium and VAT, then taking 25% plus VAT seller commission. So for every £1 they take on the fall of the hammer, they and the exchequer get over 70p.