Motor Dealers have been claiming overpayment of VAT on sales of demonstrator vehicles. The resulting claims have been paid with minimal queries by HMRC to dealers who submitted claims.
However HMRC has begun reviewing this process and believes they may have made overpayments to Car Dealers, in some cases with substantial amounts. This is related to a partial exemption status for VAT for the claims submitted. Within this retrospective review, which dates back two years many of those who have already received refund payments from HMRC have utilised the funds within their business - and will now be asked for repayment.
Many of those effected by the current process will be larger Motor Dealers with substantial claims. Understandably many of those effected are unhappy with the retrospective nature of the current review.
Need to save money on Traders Insurance? We specialise in Motor Trade policies for Car Dealers, call us on 0845 434 7819 or apply online for a Traders Policy.
However HMRC has begun reviewing this process and believes they may have made overpayments to Car Dealers, in some cases with substantial amounts. This is related to a partial exemption status for VAT for the claims submitted. Within this retrospective review, which dates back two years many of those who have already received refund payments from HMRC have utilised the funds within their business - and will now be asked for repayment.
Many of those effected by the current process will be larger Motor Dealers with substantial claims. Understandably many of those effected are unhappy with the retrospective nature of the current review.
Need to save money on Traders Insurance? We specialise in Motor Trade policies for Car Dealers, call us on 0845 434 7819 or apply online for a Traders Policy.
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