Its Back 17.5% VAT returns on 1st January!

Breaking News VAT reverts to 17.5% January 1st 2010 Confirmed!

I know i said there is so much going on in and around our business in last week’s e-newsletter…

Normally we’d keep some of the info here for next month, however there are some IMPORTANT Details enclosed….

VAT reverts to 17.5% from 1st January 2010 – See below how this affects you and your business..Beat the 2.5% VAT rise – Why not call us to see if we can help you save this VAT increase…

Audi Announce 1% Discount Margin reduction for all new cars invoiced and delivered from January 1st onwards. Beat the 1% Audi Discount margin reduction – We are where possible locating vehicles for 2009 delivery…Although cars are thin on the ground!

Glasses Guide (The trade bible) Editor confirmed used car values reach their corrected peak! Selling your part exchange this month will achieve best price before the winter negative adjustments start in November…

VW restructures fleet network and trading terms. Lead times difficult some models already 2010 delivery! Talk to us re any VW model and we’ll do our best to locate a deliverable car..:-)

New cars purchased using CASH will cost 2.5% more from 1st January 2010.

If your financial year end is 31st December Purchasing a new or VAT Qualifying used car before will not only be tax efficient but also cost 2.5% less by beating the VAT increase! Take a look at some, useful information below, you could save money…!

I am considering changing my car, cars and not sure how this change will impact on the timing of my decision?

I am considering opting out of my company car and looking at Personal Contract Hire (PCH) or Personal Contract Purchase (PCP). How will the reversion affect this and which finance option is best for me?

Personal Contract Hire – Regardless of the payment quotation given on these transactions, VAT is charged at the prevailing rate, payments made in 2009 will be charged at 15%, payments made from January 2010 at 17.5% rate advised until further notice from HMRC.

Personal Contract Purchase (PCP), Hire Purchase – Where a vehicle is invoiced and financed in 2009, repayments are calculated on a purchase price including 15% VAT. PCP transactions do not include any reclaimable VAT -

So if you are considering a PCP Deal and want to beat the increase we advise get your order in and subject to availability you could save 2.5% if the deal is completed in 2009.

Remember the tax point is the date of the invoice so any transaction invoiced from 1st January 2010 will be at the new VAT rate, Regardless of the date the car was ordered.

Cash Purchase – New and VAT Qualifying Used Cars ordered, invoiced and delivered in 2009 will include 15% VAT. Any applicable car invoiced in 2010 will be invoiced including 17.5% VAT – In over 95% of cases this 2.5% increase in VAT is not reclaimable…

Loads of detail in here we just thought with the changes in VAT, this communication is relevant and useful and could help save some money!

We are here to help, please do not hesitate to call, email or leave a comment in here and we’ll respond promptly to any questions…

Paul

Tel 0845 373 5368
Fax 01423 813511
Mob 07973 740857
www.synergyautomotive.co.uk

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