VAT: HMRC extend deadline for the Second-hand Motor Vehicle Payment Scheme in Northern Ireland

HMRC has been in contact with the CIOT and other stakeholders to raise member awareness of an extension to an upcoming deadline when accounting for VAT on the sale of second-hand cars in Northern Ireland. The change was due to take effect on 31 October 2023 and that has been extended to 30 April 2024.

"We advised you that if you have second-hand motor vehicles in stock that you bought in Great Britain and moved to Northern Ireland before 1 May 2023, you can continue to use the VAT margin scheme if those vehicles are sold by 31 October 2023. If they were to be sold after 31 October 2023, you would have to account for VAT on the full selling price of the vehicles sold after 31 October 2023.

We have listened to feedback from businesses about the 31 October deadline, and have now extended the period that you can use the VAT margin scheme for vehicles you had in stock on 1 May 2023 and have not yet sold.

You can now use the VAT margin scheme for eligible motor vehicles that you purchased in Great Britain and moved to Northern Ireland before 1 May 2023 and still have in stock,  if you resell them by 30 April 2024. If you sell them after 30 April 2024, you will have to account for VAT on the full selling price.

Find out more information about motor vehicles you had in stock on 1 May 2023: https://www.gov.uk/guidance/claim-a-vat-related-payment-if-you-buy-second-hand-motor-vehicles-in-great-britain-and-move-them-to-northern-ireland-for-resale."

Please note that at the time of writing this update, the CIOT has asked HMRC to annotate the above guidance page to record the date that the page was updated.