What can I claim
It is possible to make a claim for VAT that was previously overpaid on:
(i) The sale of demonstrator vehicles, daily rental vehicles and courtesy cars (under the second hand margin scheme).
(ii) The bonuses received from the manufacturer in respect of demonstrator vehicles, daily rental vehicles and courtesy cars.
HM Revenue and Customs previously invited new car dealers to make claims that were initially restricted to a three year period. However, following further advances in case-law it is now possible to make a claim for the period in time from the start of your businesses VAT registration (which may have been as early as April 1973) to the end of 1996.
We have a tried and tested method of calculating claims that does not require the use of business records.
In light of the above, every business that operated as a new car dealer during the relevant period now has the opportunity to claim substantial sums of VAT. It is also possible to recover statutory interest, which will generally double the value of the repayment due to your business.
To summarise, this is a once in a lifetime opportunity that will expire at the end of March 2009.
If you require further information about the technical issues surrounding this claim then please view our briefing note.
