After a long period of HMRC resistance, we are delighted to report that HMRC have now agreed that these dealers have overpaid VAT and that this VAT will be refunded to them. Furthermore, HMRC have set out their position in a Business Brief and have invited claims from any dealership who has not yet claimed. (more…)
- Provide their normal VAT return information to HMRC using Application Program Interface (API) software, which must digitally link to the accounting software or spreadsheets; and
- Keep digital VAT records.
You may wonder why, at your pre year-end audit planning meeting, your auditor queries whether there have been any instances of fraud during the year. It might seem a completely irrelevant question and one that has nothing to do with the audit but ask yourself, are your systems and controls robust enough to deter fraud? Would you know if your employees were pulling a fast one, or your supplier was really who they said they were? (more…)
The recent MHA 2017 Motor Dealer Survey shows that profitability is also under pressure from issues of consumer confidence, potential changes in purchasing habits resulting from concerns around possible diesel scrappage, the recent media and FCA attention on potential personal contract purchase (PCP) mis-selling and the likelihood of continued reductions in retail registration numbers. (more…)
Our Motor Dealer Report 2017 shows that the sector is resilient, despite Brexit and profitability concerns driving a pessimistic sector outlook for 2017.
The report covers the Current Outlook, The Future, including on-line retail, Alternative Fuel Vehicles (AFVs) and the future of car dealerships in general, and the M&A Outlook. The report also features the Dealer View from Trevor Reeve, Pentagon Chairman, the Manufacturer View from Paul Flanagan, former Renault/Dacia MD UK and Ford MD France and expert commentary from Sue Robinson, Director at the NFDA. (more…)
The government recommitted to raising the personal allowance to £12,500 and the higher rate threshold to £50,000 by the end of the Parliament.
From April 2017 the personal allowance will rise to £11,500 (£11,000) and the higher rate threshold to £45,000 (£43,000).
Nigel Morris, Employment Tax Director said “This is some good news for employees and will help many households manage the impact of inflation and price rises on the high street.”
Our MHA Motor Dealer Report 2016 shows that the sector is very positive and optimistic about the next 12 months. However, the recent Brexit vote has thrown an element of uncertainty into the mix.
The report looks at Financial Performance Drivers, Future Industry Outlook, Operational Performance Drivers and other elements such as Social Media and Marketing Service Plans.
MHA and Motor Trader’s second joint industry barometer survey shows that the optimism shown at the beginning of the year has certainly been eroded in the second half of the year, particularly in relation to margins and the delivery of profit levels
Steve Freeman, MHA Head of Motor Sector and Partner at MacIntyre Hudson comments “My dealer clients, whilst continuing to deliver strong volume growth and good profits, are now setting full year profit expectations more cautiously than anticipated in the first half of the year, principally due to the margin pressures from increased manufacturer targets.”
The survey also shows that whilst sourcing used cars clearly remains a challenge for many dealers, those who have excelled in this area and maximised the impact of their websites have generated very strong used car profits.
A new accounting standard shall soon come into force that fundamentally changes the financial reporting for many UK companies. Although these changes may affect companies in general, there are a number of key changes that will affect companies with ownership of properties.
Unless, as it currently stands, but this may well be changing further, you are preparing your accounts in accordance with the FRSSE (Financial Reporting Standard for Smaller Entities) or applying the IFRS international accounting standards, then your company’s financial statements will need to be prepared in accordance with a new accounting standard, FRS 102, which takes effect from periods beginning on or after 1 January 2015.
On transition to this new standard, your company will be required to restate its comparative results to amounts as if it had applied the new accounting standard in previous years. Careful planning and identification of the main changes is therefore required now as you cannot wait until 2015 to deal with the points.
MHA Maclntyre Hudson and Motor Trader’s joint industry barometer survey finds the majority of dealers believe profitability in 2014 will be higher than last year.
Steve Freeman, Head of National Motor Group at MHA MacIntyre Hudson comments “Dealers are continuing to see strong sales growth and improving profitability. They expect to deliver higher 2014 full year profits and we will see the extent of this in our follow-up survey later this year.”