½Û×ÓÊÓĈµ

Second-hand motor vehicle payment scheme

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Second-hand motor vehicle payment scheme

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
imgtext

This guidance note provides information on the second-hand motor vehicle payment scheme that applies from 1 May 2023. References to Great Britain in the context of this guidance note should be understood as including the Isle of Man.

The second-hand motor vehicle payment scheme allows businesses to claim a VAT related payment on eligible second-hand motor vehicles that they buy in Great Britain and move to Northern Ireland or the EU after 30 April 2023 with the intention of selling them.

One of the implications of the UK ceasing to be a member of the EU is that, for transactions in second-hand vehicles bought in Great Britain and sold in Northern Ireland, the margin scheme for second-hand motor vehicles is not available from 1 May 2024. Prior to 1 May 2024 the margin scheme for second-hand vehicles is restricted to eligible vehicles held as stock on 1 May 2023 and sold in Northern Ireland before 1 May 2024. This guidance note provides information regarding:

  1. •

    why the second-hand motor vehicle payment scheme was introduced

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by

Popular Articles

Payroll record keeping

Payroll record keepingUnder SI 2003/2682, reg 97, “...an employer must keep, for not less than 3 years after the end of the tax year to which they relate, all PAYE records which are not required to be sent to [HMRC]...”. Reasons for keeping the records include:•being able to calculate tax and

14 Jul 2020 12:52 | Produced by Tolley in association with Ian Holloway Read more Read more

Entity classification

Entity classificationImplications of entity classificationIf a subsidiary is established, it is important to determine how it will be treated for UK tax purposes as this will determine the basis on which it is taxed. A subsidiary may either be transparent (like a partnership, where the individual

14 Jul 2020 11:37 | Produced by Tolley Read more Read more

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more Read more