Warnings for Car Dealers on HMRC tax bills

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.

Customer complaints on the increase reports OFT

The Office of Fair Trading has reported an increase in the number of used car complaints from consumers, the number of reported complaints has risen to 38,000 during the first half of 2010. From the perspective of car dealers this is causing costs to rise and increases the importance of choosing the right Motor Trade Insurance policy.

Whilst reputable used car dealers, take every reasonable precaution with vehicles they sell - there is still the potential that a substantial claim could arise from a defective vehicle that has been sold or serviced by you. Therefore indemnity insurance cover on your Motor Trade policy can help protect against this potential risk to your trading activity.

In response to the recent increase in customer complaints, the OFT has launched a campaign to help customers better understand their rights when purchasing a vehicle. Most of the complaints recorded within the figures, have become apparent in the first three months. In such circumstances the dealer will often be responsible for fixing the issue, with no charge to the customer.

Looking to save money on your Traders Insurance? Call us today on: 0845 434 7819 to find out how much you could save.