VAT Margin Scheme

Jpeterson85

We are using the VAT margin scheme for memorabilia (second hand goods) we buy and sell.
My question is what we can consider as part of the VAT margin scheme?

For example, we purchase an autograph for £100.00.
Before selling, we frame the item by our framing supplier at a cost of £50.00.
When calculating the VAT margin scheme, can we consider the cost as the total of the two i.e. £150.00 in the example above?
So if the item sold for £300.00, we would pay VAT at 16.67% on the difference between the purchase and selling price, £150.00 VATABLE AT 16.67 = £21.43 VAT payable using VAT margin scheme.

My question is can we consider the framing costs towards the VAT margin scheme or not?
Please note, one of our framers charges us VAT, the other does not. I understand that if we are charged VAT on anything then this is not applicable for the VAT margin scheme however since one of our framers is non VAT on invoices so can this be considered?

Jpeterson85

Bump!