Mark Coles, partner in building consultancy and project management at Rapleys, said: “Dealers need to make sure their accountants and tax advisers are making the necessary claims and not ignoring them due to a lack of knowledge about plant and machinery within their buildings.
“They should also be aware of the rules when buying or selling any property assets to ensure values are maximised.”
Dealers should also be familiar with their repair, redecoration and reinstatement obligations and make financial provision to cover any necessary future works to comply with their lease obligations. These can be offset for tax purposes, assisting an organisation’s cash flow.
“Insurance premiums are often one area overlooked, but the costs can quickly mount up,” said Coles.
“We frequently find that valuations have become over-inflated and that the amount of insurance required to cover a complete rebuild is actually much lower, and that the corresponding premium can be reduced.”
New EU legislation that demands an energy audit from large enterprises (250-plus employees, turnover in excess of £39m and a balance sheet of more than £34m), could provide an opportunity for dealers to save money. Energy-efficient measures, such as installing LED lighting, will cost less following the initial investment.
Meanwhile, failure to undertake an Energy Saving Opportunity Scheme (ESOS) assessment (the UK’s method of compliance), could prove costly in itself, with potential penalties of £50,000.