Antique Dealers accounting, handled.
Buying at auction and selling on margin, but is the VAT working in your favour?
Second-hand goods bought without a VAT invoice, the auctioneer’s buyer’s premium, the reduced-rate import VAT on genuine antiques, and the line between trading stock and your own collection, antiques sit awkwardly inside standard retail accounting. We give dealers a stock book and margin scheme that stand up to an HMRC inspection.
What we get right for antique dealers.
- Make the Margin Scheme Work
- Charge VAT on the margin, not the full sale price, with a stock book that survives inspection, so you never overpay on a piece bought without an invoice.
- Get Auction Costs Right
- Treat buyer’s premium, commission, and restoration costs correctly so each lot’s true cost and margin are clear before you price it.
- Separate Trade from Collection
- Draw the line between trading stock and privately held pieces, so personal sales fall under the right tax, and your chattels reliefs aren’t lost.
- Reduced-Rate Import VAT
- Reclaim and apply the reduced effective import VAT on qualifying antiques and works of art, instead of paying the full 20% by default.
The full picture.
01Margin Scheme Stock Book
Item-by-item purchase price, sale price, and margin records that meet HMRC’s second-hand goods requirements.
02Auction & Fair Cost Tracking
Capture buyer’s premium, lot commission, transport, and restoration against each piece for true profitability.
03Import VAT on Antiques
Apply the reduced effective rate on qualifying imported antiques and collectors’ items, with the paperwork to back it.
04Stock Valuation & Provisions
Value inventory at the lower of cost or net realisable value and document provisions on slow-moving or deteriorating lines.
05Trader vs Investor Tax Planning
Distinguish trading income from capital disposals, and protect the chattels exemption on genuinely personal items.
06Cash Sale & AML Record Support
Keep books that back up the customer due-diligence records high-value cash dealers are required to hold.
First call to filed.
- 01
Discovery
Understanding your business needs.
- 02
Solution Design
Crafting your custom accounting strategy.
- 03
Onboarding
Quick and easy integration.
- 04
Regular Rhythm
Consistent monitoring and reporting.
Guides for antique dealers
Plain-English explainers, kept current with the latest HMRC rules.
Frequently asked questions.
For eligible second-hand goods you charge VAT only on your margin, the difference between sale price and purchase price, not the full selling price. A chest bought for £900 and sold for £1,500 carries VAT on the £600 margin, not the £1,500. You can't reclaim input VAT on the purchase, and you must keep a stock book recording each item's purchase price, sale price, and margin. We set the stock book up correctly and run the margin calculation on every VAT return.
Yes, genuine antiques, works of art, and collectors' items that qualify are charged import VAT on a reduced value, giving an effective rate of around 5% rather than the standard 20%. The item has to meet HMRC's definition and you need the right import documentation. We make sure qualifying pieces are declared correctly so you're not paying full-rate VAT on stock that's entitled to the reduced rate.
Not necessarily. Items you buy to sell are trading stock, taxed as income. Genuinely personal pieces can fall under Capital Gains Tax instead, where the chattels rules may exempt items sold for £6,000 or less. The line is drawn on the 'badges of trade', frequency, intention, how you sourced it. We help you document the distinction so personal sales aren't swept into your trading profit by default.
Every plan covers year-end accounts, your tax return, and unlimited support from a named ACCA accountant. For a VAT-registered dealer we set up and run the margin scheme stock book, handle quarterly VAT, and keep an antiques-specific expense list (fairs, restoration, insurance, transit cover). Essentials starts at £99/month, Premium Plus at £199 adds VAT and tax planning, all on a rolling monthly contract with a 30-day money-back guarantee.
Stop overpaying tax. Start filing in 5 days.
Thirty minutes with an ACCA-qualified accountant. Most owners uncover £1,000-£3,000 in annual savings on the first call. If we are not the right fit, you walk away with a free tax review on the house.
