Vehicle payment scheme in Northern Ireland extended

The deadline for the second-hand motor vehicle payment scheme in Northern Ireland has been extended HMRC has confirmed.

In a note to the CIOT and other professional bodies HMRC states that this has been extended to 30 April 2024 from 31 October 2023.

Broadly a taxpayer could use the VAT margin scheme for second-hand vehicles bought in Great Britain and moved to Northern Ireland before 1 May 2023 if those vehicles were sold by 31 October 2023. If they were to be sold after that date the taxpayer would have to account for VAT on the full selling price.

HMRC says it has ‘listened to feedback from businesses about the 31 October deadline’ and has extended the period that a taxpayer can use the VAT margin scheme for vehicles they had in stock on 1 May 2023 but not yet...