Used gun resale

[ips]

Seem to recall one of our very best ot shooters doing rather well with one before moving on to Beretta.

 

[Darkside]

Interesting isn't it.

So £6000 new but including 20% VAT. So Divide by 1.2 and you get a new cost for the gun of £5000. The fact you wanted a new gun and paid the tax has no value to me, so that can be written off straight away (unless it is very rare and highly desirable). Then it is how much depreciation is reasonable in the first year. Getting £4000 implies a 20% depreciation on cost, or 33% in the first year on the after tax cost. That is in line with what you would expect from a car.

The dealer is pitching it at £4990. He is expecting a trade and a haggle. If we walked in with cash there is no way we would be accepting £150 off, we should be looking for 10% for cash? So I am at £4400. If not there are plenty others for sale, its a competitive world.

Not such a sexy deal now. Gross profit of 10% pre tax and overheads. Hardly worth the effort is it? I make better margins selling logs...

Well, that explanation made my "did you sums include VAT" reply look really lazy...in my head "did your sums include VAT" said everything you just did!!? .

 

[Salopian]

" And off we go on the Miroku wuuuuuhhhaaank "

That's just your opinion, I'm entitled to mine, and I think all guns are overpriced.

But certain guns are vastly overpriced.

 

[westley]

Oh Hell, Now I am really confused, been searching the web for a picture of a Lancia 12 bore but can not find one !!!!!    :fie:

 

[urbane1]

Or 5% as in Alberta

 

[Buffalo]

Hope not to appear stupid only I thought VAT ONLY applied to new items purchased (unless from a business perspective it's reclaimed and applied once the goods are sold on). You see this on industrial assets being sold.

Therefore if a dealer is selling a second hand gun he wouldn't pay VAT on this ......Any accountants on here?

 

[Doctor Lecter]

seriously mirokus  are top draw clay busters , even a grade one  is a engineering master class of  gunsmithing  , just take a look at value of a grade 5 superb .!   push the boat out and have a miroku president     cant be bettered   imho . :nhl:

 

[Mark Robinson]

Neil,

I read through this - https://www.gov.uk/vat-margin-schemes/overview and the pages after it.  It appears if the shop uses the margin scheme the shop must pay VAT on the profit.  It states that the buyers invoice should show the total price but must not show VAT separately.  So if you bought a secondhand gun you should not see VAT on your bill.

 

[bigmac1]

You took quite a hit in four months then.

:fie: Ye I know but don't tell the other half  :hocky:

 

[ips]

I always buy new and I have taken a hit many times so no worries your secret safe with me.

 

[Rosso]

Oh Hell, Now I am really confused, been searching the web for a picture of a Lancia 12 bore but can not find one !!!!!    :fie:

Lancia translated to English = Perazzi.

 

[chubby]

We only pay VAT on the profit of a used gun, most new guns return £50 - £150! why do we do it? well you may buy something else that

has more profit in. :girlcrazy:

 

[ips]

And I believe cartridges are a total loss leader ?

 

[Rosso]

Yep I looked at a £800 jumper for my Lesley at Churchills.

I didn't but it.

X-Mas cards £18 each.

I could go on.

 

[RobertBeard]

Hope not to appear stupid only I thought VAT ONLY applied to new items purchased (unless from a business perspective it's reclaimed and applied once the goods are sold on). You see this on industrial assets being sold.

Therefore if a dealer is selling a second hand gun he wouldn't pay VAT on this ......Any accountants on here?

You obviously didn't read or take in my posts numbered 4 and 28 and yes I am a chartered accountant - but recently retired!

 

[chubby]

Cartridges 5% then take the VAT off! so they make F all :hunter:

 

[shootinguru]

:fie:  Unfortunately Chubbie is 100% correct!

 

[Buffalo]

You obviously didn't read or take in my posts numbered 4 and 28 and yes I am a chartered accountant - but recently retired!

Thanks Robert - fully explained, as you can tell I jumped straight in without fully reading the threads......BIG lesson learnt on my part

 

[Doctor Lecter]

I don't believe  they make nothing on shells ,    get real .

 

[westley]

Can not  get better than Miroku President,

Oh yes it can, have a look at a Miroku MK10 grade 6, sideplated.