Post-Brexit Trade Deal:

On Monday 27 February, Prime Minister Rishi Sunak and European Commission President Ursula von der Leyen announced that a new deal has be struck between the UK and the EU over the post-Brexit Northern Ireland Trade Deal.

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), commented:

We are encouraged to see that the government of the United Kingdom and the European Union have made a breakthrough regarding the Brexit impasse in Northern Ireland.

This is obviously particularly important for NFDA NI members and in the coming weeks we will be looking into the details of the Windsor Framework to understand the full implications.

NFDA NI will continue to support franchised dealers in Northern Ireland, liaising with the UK government and the Northern Ireland Assembly to ensure that our members are able to conduct trade effectively between the Northern Ireland, Great Britain and the European Union.”

MOT Testing Issue:

The combination of Covid restrictions and the January 2020 lift equipment crisis has meant MOT testing has been a chronic problem for both motorists and vehicle retailers in Northern Ireland for years. This has created an unworkable backlog of over six months and motorists are now regularly having to travel hundreds of miles to secure an appointment in some cases.

NFDA is actively lobbying the NI Executive to address the MOT backlog which is compromising road safety and will inevitably lead to an increase In road casualties. The MOT backlog means franchised dealers across Northern Ireland are left unable to sell vehicles to customers which is causing severe operational, reputational and financial damage.

DVSA’s MOT History Service Extended:

Working in partnership with Northern Ireland’s Driver and Vehicle Agency (DVA), you will now be able to check the MOT history of a light vehicle registered in Northern Ireland on GOV.UK.

A UK wide service:

DVSA’s Check MOT History service now allows anyone to check a UK registered light vehicle’s MOT history. This is invaluable when you’re buying, or if you want to check your own vehicle’s history is up to date.

The service can be found (here).

MOT digital services:

We’re committed to continually improving DVSA’s digital services and making them even better for customers.

We’ve recently made improvements so that it’s easier for motorists to:

  • view and amend their MOT reminders
  • access and print their MOT certificates

Second-Hand Motor Vehicle Payment Scheme:

HMRC have announced a new scheme, the second-hand motor vehicle payment scheme due to be introduced on 1 May 2023. It will replace the VAT margin scheme for second-hand vehicles that you buy in Great Britain, move to Northern Ireland and then resell.

Until the new scheme is introduced, you should continue to follow the current guidance on sales of second-hand motor vehicles in Northern Ireland.

The second-hand motor vehicle payment scheme allows you to claim a VAT-related payment on your VAT Return if you:

are VAT registered in the UK and have a business establishment in the UK

buy an eligible second-hand motor vehicle in Great Britain

move that vehicle to Northern Ireland with the intention to resell it in Northern Ireland or to the EU

If you buy second-hand vehicles in Great Britain and move them to Northern Ireland, you will no longer be able to use a margin scheme when you sell them.

If you are VAT registered in the EU, you may also be able to use the payment scheme if you buy second-hand vehicles in Great Britain and export them to the EU for resale.

How the payment scheme works:

You can use the scheme to claim a VAT-related payment for any eligible second-hand motor vehicle that you buy in Great Britain and then move to Northern Ireland for resale.

You do not have to move the vehicle from Great Britain to Northern Ireland yourself. You can arrange for the seller or another party such as a haulier or carrier to move it to Northern Ireland for you.

You must enter details of the vehicle in your stock book. You should also provide other evidence that you intend to sell the vehicle. For example, advertising it for sale or it being on your garage forecourt.

You can only use the scheme if your intention is that the first use to which you put the vehicle when you move it to Northern Ireland is to resell it. You cannot use the scheme if you intend to use it within the business or privately, even if you intend to sell the vehicle afterwards.

You can use the scheme if you plan to hold the vehicle out for sale but need to do repair or other work on it first. You can also use the scheme if you hold the vehicle out for resale but use it for another purpose (such as a courtesy car) for a short period of time while trying to sell it.