Dragon2000 Motor Trade Forum - Tax refunds in the trade

GJM

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Tax refunds in the trade
Jun 23^rd, 2010 at 10:04am

Having recently decided to pass a few cars through the business...would like some advice from seasons pro's.

Basically if someone trades in a car with tax on it and the car is in poor condition therefore would not want to remarket it, can we claim the tax back as I'm sure this used to be allowed but recently heard it was not allowed in the trade.

Also if we aquire a car that has had the tax disc lost, can we apply to get a replacement, have a car came in that is showing it is still taxed for quite some time on the DVLA site.

Thanks

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sidmon

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Re: Tax refunds in the trade
Reply #1 - Jun 23^rd, 2010 at 8:18pm

Unfortunately nowadays the only person who can cash in the any remaining VED (tax) is the owner whose name is registered on the V5.

As for claiming for a replacement tax disc it is possible but you'll find that if it's missing but is shown on the database as having tax then more than likely the previous owner is just slow cashing the disc in or the DVLA are just slow updating the system. Angry

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GJM

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Re: Tax refunds in the trade
Reply #2 - Jun 24^th, 2010 at 12:17pm

Thanks for reply, it was mentioned that the trade could no longer cash in the disc but wanted to check for sure.

We did have one vehicle with no disc but was showing and it was only showing as taxed online for a short while before it was cashed.

This one seems to have been showing as still taxed for a while, guess could just be slow, however how do the trade go about reclaiming the disc as again all the forms etc point to having your name in the V5, however that wont be happening as we sent the trade part off to DVLA and have no intention of putting the main v5 in our name

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sidmon

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Re: Tax refunds in the trade
Reply #3 - Jun 24^th, 2010 at 2:50pm

The problem you've got is that the only way to apply for a tax disc is if lost or stolen. In this case though you cannot be sure how or why it's missing so your best bet woud be to contact the previous owner.

Can't imagine the DVLA would take too kindly to you reclaiming it back as lost and then someone try's cashing the original disc in! Wink

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GJM Dragon Newbies Members Only Forum Offline Dragon200 User Posts: 42	Re: Tax refunds in the trade Reply #4 - Jun 25^th, 2010 at 10:02am Obviously but my question is for example in this case is the disc is genuinely lost, how do you claim? The DVLA have the trade slip in our name, the V5 is in the previous owners and from what I can see they say the only person who can apply for a duplicate disc is the person on the V5 or the person about to go on the V5?
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sidmon Members Only Forum Offline Alright my boy?? Posts: 84	Re: Tax refunds in the trade Reply #5 - Jun 25^th, 2010 at 12:05pm Yes I think that's correct, you'd have to register the V5 in your name privately to get the disc or just advise the new owner to apply for it.
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milbrook

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Re: Tax refunds in the trade
Reply #6 - Jun 25^th, 2010 at 12:43pm

GJM wrote on Jun 23^rd, 2010 at 10:04am:

Having recently decided to pass a few cars through the business...would like some advice from seasons pro's.

Basically if someone trades in a car with tax on it and the car is in poor condition therefore would not want to remarket it, can we claim the tax back as I'm sure this used to be allowed but recently heard it was not allowed in the trade.

Also if we aquire a car that has had the tax disc lost, can we apply to get a replacement, have a car came in that is showing it is still taxed for quite some time on the DVLA site.

Thanks

Occupational hazard I'm afraid. Basically this issue, under the new laws, in this case makes it insumountable. If you feel this is a significant loss aginst the vehicle in marketing terms, then adjust your vehicles margin to absorb it. Finally reflect this in your accounts aginst the final sale price of the vehicle, including adjustment for any additional VAT etc.

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GJM

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Re: Tax refunds in the trade
Reply #7 - Jun 27^th, 2010 at 11:35am

It's not a huge problem just one where I wondered if there was a way round.

However I thought it might be like this, more money for old rope in the car tax game I guess.

So far I have never reflected such costs with regards to cost an sale price as from what I read the margin scheme did not take this into consideration.

If we keep the car side seperate and keep under the VAT threshold, how does it work then, do you just pay tax on the profits and no VAT

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milbrook Members Only Forum Offline Milbrook into Europe!! Posts: 400	Re: Tax refunds in the trade Reply #8 - Jun 28^th, 2010 at 10:18am If you are not VAT registered for reasons that you are not getting anywhere near the threshold, or simply by choice, then you cannot claim back VAT so this is irrelavent. All other tax, icome, etc applies.
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GJM

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Re: Tax refunds in the trade
Reply #9 - Jun 28^th, 2010 at 11:00am

Thanks for that, as we are only passing a few cars at the moment mainly to see how it goes I was thinking that we would not reach the threshhold.

You must be registered to use the margin scheme, correct?

If we stay as we are do we just work out any profits made overall and pay income tax as normal.

One thing I thought of could we get caught out if we take a qualifying vehicle or is that only relevant if VAT reg and using the margin scheme

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