We treat a dealership as a dealership, not a shop. We get VAT right on every vehicle, keep the stock book, track profit per unit after reconditioning and stocking interest, report each department separately, manage stock days and stocking finance, and support you with customer finance and the FCA. So you know what each unit and each department is really making.

If you bought the car without VAT being charged, for example from a private seller or another dealer using the scheme, you can account for VAT on your margin only. The VAT is one-sixth of the difference between your buying and selling price. If you sell at a loss, no VAT is due, but each vehicle is worked out on its own, so a loss on one can’t reduce the VAT on another. You must keep a stock book and the right invoices.

Only if no VAT was charged when you bought the van, for example from a private seller. Most vans are bought from VAT-registered businesses on a VAT invoice, so you reclaim the VAT on purchase and charge 20% on the full selling price. Using the wrong method on a van is one of the most common mistakes we see.

No. Under the margin scheme, the purchase price is what you paid for the vehicle. Reconditioning, parts and repairs can’t be added to it, but you can reclaim the VAT on those costs in the normal way. You should still charge them to each vehicle in your own records, so you know its true profit.

A car where VAT could be reclaimed when it was first bought, typically by a leasing company, a rental firm or a driving school. When you sell it on, you charge VAT at 20% on the full price rather than using the margin scheme, and you can reclaim the VAT you paid when you bought it. Most other used cars are not qualifying cars.

Typically 8 to 12 times a year, which means selling and replacing your whole stock every 30 to 45 days. Work it out by dividing the cost of vehicles sold by your average stock value. Niche or specialist vehicles may turn more slowly but earn more per unit, so the right target depends on what you sell.

At a realistic value. If you over-allow on a trade-in and push up the price of the vehicle you sell, you move profit and VAT from one deal to the next, and both margins become meaningless. Under the margin scheme, the value you record for the part-exchange becomes its purchase price, so it matters when you sell it on too.

Yes. Introducing customers to finance and arranging it is credit broking, a regulated activity, so you need FCA authorisation with the right permissions before you offer it. You then need approval from each lender you want to work with, compliant financial promotions and clear disclosure of how you’re paid. We helped one van dealer through every stage.

The FCA’s scheme compensates customers for past commission arrangements on agreements going back to 2007. Lenders are responsible for paying redress, but they rely on dealers’ and brokers’ records, and some agreements allow costs to be passed back. Check your lender agreements, keep your commission records and talk to us about any potential exposure. The scheme has been challenged in the courts, so its details may still change.

Yes. The benefit in kind on a fully electric car is 4% of its list price in 2026/27 and 5% in 2027/28, far lower than a petrol or diesel car. Through salary sacrifice, employees also save income tax and National Insurance, and some save more again through lower student loan repayments, a smaller High Income Child Benefit Charge or keeping their income below £100,000.

No. We’re based in Melton Mowbray, Leicestershire, and work with motor businesses across the UK using cloud accounting software such as Xero, QuickBooks and Sage, alongside your dealer management system, and regular video calls. We’re happy to visit your site too.

It depends on what you need, from VAT, bookkeeping and payroll to monthly departmental management accounts and a part-time finance director. After a free 30-minute call, we send you a fixed monthly fee, so there are no surprises.