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NFDA raises concerns about the FCA and the future of MOT testing

Sue Robinson, NFDA

The National Franchised Dealers Association has raised the cost of FCA compliance, an extended MOT testing period and the BIK diesel surcharge with the HM Treasury.

In their 2016 Budget submission to the Chancellor of the Exchequer, George Osborne MP, NFDA director Sue Robinson stated: “It is imperative that the industry’s success is supported and aided by Government policy, not hindered by bureaucratic processes, unnecessary regulation and restrictions to finance and investment.”

The NFDA reported that, under the OFT, fee costs were on average £1000, paid once every five years. In contrast to this, FCA annual authorisation fees are on average costing dealers £5,000  and urged a review of the scheme.

The association also urged the Government to revisit the planned relaxation of the 3% diesel surcharge for Benefit in Kind (BIK) purposes, and in addition has asked the Government to ensure that the company car tax rates are delivered four or more years in advance.

This follows concerns from NFDA members that the rates of company car tax post 2019 have still not been set.

Concerns that a proposal to extend the MOT testing period to four years for new cars and motorbikes were also expressed, along with fears that it would result in a rise in road accidents and fatalities.

Robinson added: “In an industry which accounts for 4% of the UK’s GDP, and employs approximately 770,000 people – with 506,000 directly employed in the retail sector – it is vital that the treasury acknowledges our concerns and develops policies which will sustain growth and aid business development and investment.

“The NFDA looks forward to the Budget Statement next month and hopes that the issues highlighted will be acknowledged.” 



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