Tag Archives: hmrc

The government has reversed its decision to tax double cab pick-ups as cars made earlier this month. On 12 February it announced that from 1 July 2024, DCPUs with a payload of one tonne or more would be treated as cars rather than goods vehicles for both capital allowances and benefit-in-kind purposes. HMRC announced yesterday that its existing guidance will ...

The automotive sector underpaid £444.2 million in tax in 2021-22, HMRC has reported. As a result, dealerships across the UK could be targeted and subsequently investigated for suspected tax evasion. Nick Lanigan, tax assistant manager for Armstrong Watson, said: “It’s important motor dealers are aware of the risks and take steps to mitigate them. The automotive sector is receiving a ...

HMRC has now provided detailed guidance for the new repayment process that will replace the VAT margin scheme for second-hand vehicles transferred between Great Britain and Northern Ireland, and then resold. Head of automotive tax at Armstrong Watson Michelle Malone, said the HMRC move was welcome The on-going uncertainty over what the rules would look like left some suppliers concerned ...

In an unusual move, HMRC have directly targeted motor dealers with an educational email and video aimed at reducing the frequent VAT errors discovered on VAT inspections. Many businesses have been left much to their own devices while HMRC have been distracted by the twin challenges of Brexit and COVID, VAT enquiries at motor retailers have continued apace for the ...

HMRC has issued new guidance on what dealers need to do if they claimed too much or not enough from the Coronavirus Job Retention Scheme. Dealers who have made an error in a claim that means they have received too much, must pay this back to HMRC. If dealers have made an error that has resulted in receiving too little ...

Dealers are being urged to ensure they are compliant with the Government’s new Making Tax Digital service, designed to make it easier for businesses to get their tax right and keep on top of their affairs. From 1 April 2019, all VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are required to keep their VAT business records ...

High volumes of PCP sales and reductions in diesel values is likely to lead to VAT problems for some dealers. That’s the view of finance dealer specialist Tim Humphries, writing in legal firm Birketts’ Motor Matters newsletter . Humphries said the trade is likely to see so called ‘bumping’ continue as an issue for dealers. “Bumping has been around for ...

A mechanic, who failed to pay almost £210,000 of tax and National Insurance due on self-employed earnings, has been jailed for 18 months. A HM Revenue and Customs (HMRC) probe revealed that from 2009 to 2014 Iain Wilson, 61, from MacKenzie Gardens in Kilbride had failed to declare all of his earnings as the sole proprietor of his business, ‘Milton ...

A jailed luxury car dealer, who built a property empire with profits from a VAT scam involving top end sports cars like Lamborghinis, Porsches and Mercedes has been ordered to repay £2m. Sarju Popat, 51, originally of Rowlands Avenue, Pinner, Harrow, London, was jailed for five-and-a-half years for fraudulently claiming back millions of pounds of tax on car sales between ...

Dealers are losing out to the tune of £2m on overpayment of vehicle Benefit In Kind (BIK). That’s the finding of an audit carried out by Coopers Solutions on HMRC’s Averaging Agreement for company car drivers. The audit found that 75% of dealership employees overpay Benefit in Kind (BIK). Cooper Solutions is calling for HMRC to overhaul the Averaging Agreement ...