Motor Dealers VAT reclaims

HMRC have confirmed that motor dealers that have accounted for VAT on the full selling price of cars sold to finance companies where the dealer has offered a Dealer Deposit Contribution(DDC) to the deposit paid by the customer, should have accounted for VAT on the price less the DDC offered.

Motor dealers can make claims of VAT over accounted for on the DDC going back 4 years.

Advisers should review their motor dealer clients to determine if VAT claims can be made.

Click here for the link to HMRC Business Brief, which provides more information and we will be happy to assist and discuss potential claims of VAT.