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HMRC decision means more VAT reclaims for dealers

Dealers will be able to reclaim even more overpaid VAT following a decision made by Her Majesty’s Revenue and Customs (HMRC), according to the RMI’s National Franchised Dealers Association (NFDA).

HMRC, following a further decision in the House of Lords, have conceded that they must pay claims for overpaid VAT on demonstrators and manufacturer bonuses that they had previously believed that they did not need to pay in full. The latest ruling means that full payment to dealers will now need to be made.

Sue Robinson, NFDA director, said: “This is good news for dealers, who have previously struggled to have claims paid, or have signed to make undertakings that they will repay VAT to HMRC if Customs had won the case."

Liz Gallagher, of Trevor Jones Chartered Accountants, said: “Lack of records is not a barrier to making these repayment claims which cover the period from 1973 when VAT was introduced, up until 1996.

"Whilst no new deadline has been imposed for making these claims, we urge dealers who think that they may be eligible to seek professional help in quantifying and submitting claim.”

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