HMRC Extend Deadline For Margin Scheme Use In Northern Ireland
25th October 2023
As part of the second-hand motor vehicle payment scheme for Northern Ireland, car dealers were allowed to continue to use the VAT margin scheme for eligible vehicles already in stock on 1st May 2023, when the payment scheme was introduced. At the time, this included a deadline of 31st October 2023 for the use of the margin scheme when selling these vehicles, and if sold after this date, car dealers would have to account for VAT on the full selling price of the vehicles.
However, HMRC have announced that after listening to feedback from businesses, this deadline has now been extended to the end of next April.
Car dealers with unsold stock vehicles they purchased in Great Britain (GB) and moved to Northern Ireland (NI) before 1st May 2023 can continue to use the VAT margin scheme for those vehicles, if dealers resell them by 30th April 2024. If they are sold after 30th April 2024, dealers will have to account for VAT on the full selling price.
The second-hand motor vehicle payment scheme was introduced by HMRC for second-hand vehicles purchased in GB and moved to Northern Ireland for resale from 1st May 2023. When those vehicles are sold, VAT will be charged on the full selling price, however the scheme puts car dealers who buy eligible vehicles from GB in a similar position to the VAT margin scheme.
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