Run the Margin Scheme Cleanly
Account for VAT on the margin per vehicle, with the stock records HMRC expects — and avoid charging VAT on the full price of a car bought without an invoice.
Who we helpIndustry
Classic Car Dealers accounting, handled.
Six-figure cars on the forecourt — is your VAT and stock accounting keeping up?
The used-car margin scheme, blocked input VAT on vehicle purchases, deposits that trigger a VAT point months before delivery, and the line between trading stock and a CGT-free private classic — high-value vehicles need accounting built for the trade, not a generic retail ledger. We give classic and specialist dealers numbers as precise as the cars.
- Used-Car VAT Margin Scheme
- High-Value Deposits & VAT Tax Points
- Trading Stock vs Private Collection
- 4.9 Google · 63 reviews
- ACCA-qualified
- 30-day money-back
Our impact
How we help classic car dealers succeed.
01 02 Control High-Value Cash Flow
Plan around six-figure stock, stocking finance, and seasonal demand so a slow quarter doesn’t strand your working capital in the showroom.
03 Handle Deposits Correctly
Account for the VAT tax point the moment a deposit lands, even on a car that won’t change hands for months, so VAT never catches you short.
04 Protect the Right Tax Treatment
Separate trading stock from genuinely private vehicles — where the wasting-chattel rules can keep a personal classic outside Capital Gains Tax.
Tailored services
Everything you need for classic car dealers.
01 Per-Vehicle Margin Records
Purchase price, prep and restoration costs, sale price, and margin tracked car-by-car for the second-hand scheme.
02 Stocking Finance & Cash Flow
Model floor-plan finance, interest costs, and seasonal swings against real forecourt turnover.
03 Deposit & WIP Accounting
Track customer deposits, work in progress on restorations, and final settlement with correct VAT timing.
04 Consignment & Brokered Sales
Account correctly for sale-or-return and brokered vehicles where you never take title.
05 Trader vs Collector Planning
Distinguish trading profit from capital disposals and apply the wasting-chattel position to private vehicles.
06 Export & Cross-Border Sales
Handle VAT and evidence requirements on cars sold to overseas and EU buyers.
How we work
Four steps from first call to filed.
01 Discovery
Understanding your business needs.
02 Solution Design
Crafting your custom accounting strategy.
03 Onboarding
Quick and easy integration.
04 Regular Rhythm
Consistent monitoring and reporting.
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Common questions
Frequently asked questions.
Yes — eligible second-hand vehicles qualify for the margin scheme, so you account for VAT on your margin rather than the full sale price, which matters a lot on a six-figure car. You must keep a stock book with each vehicle's purchase price, sale price, and margin, and you can't reclaim input VAT on the purchase. We set this up per vehicle so a car bought without a VAT invoice doesn't end up carrying VAT on its entire value.
The VAT tax point is the earlier of receiving the deposit, issuing an invoice, or delivering the vehicle — so a deposit creates a VAT point straight away, even if collection is months out. On high-value cars that can be a meaningful sum of VAT cash well ahead of the sale completing. We build this into your invoicing and cash-flow planning so the timing never catches you out.
Input VAT on cars is normally blocked, but a recognised motor dealer buying genuinely for resale as stock can be an exception — the treatment depends on whether the car is stock-in-trade and isn't made available for private use. Get it wrong and you either lose a valid reclaim or claim one you're not entitled to. We confirm the position vehicle by vehicle so your VAT returns stand up.
For a private individual, cars are treated as wasting chattels and are generally exempt from Capital Gains Tax — even a classic that's risen sharply in value. But that's a private owner; a car you hold as trading stock is taxed as trading income, not CGT. The distinction between dealer stock and personal collection is exactly where HMRC looks, so we help you evidence which is which.
We run the per-vehicle margin scheme stock book, quarterly VAT, year-end accounts, and your tax return, with a named ACCA accountant on a 72-hour reply commitment. We also model stocking finance and seasonal cash flow against your forecourt turnover. Premium Plus at £199/month suits most VAT-registered dealers; Enterprise at £499 covers larger operations with staff and multiple sites. Rolling monthly, 30-day money-back guarantee.
Free · 30 minutes · No obligation
Stop overpaying tax. Start filing in 5 days.
Thirty minutes with an ACCA-qualified accountant. Most owners uncover £1,000–£3,000 in annual savings on the first call. If we are not the right fit, you walk away with a free tax review on the house.
