All articles by Andy Thompson
Andy Thompson
VAT change – concern over HP orders
Following the temporary VAT reduction at the end of last year, the rate is due to go back up from 15 to 17.5 percent on 1 January 2010 There is concern as to whether customers ordering new cars towards the end of this year, ahead of the increase, will be able to beat the VAT rise if they take point-of-sale finance Where the car may not be available for delivery until after 1 January, a cash purchase customer will be able to pay VAT at the 15 percent rate by paying for the car in advance.
New tendering framework in place
Vehicle lessors have welcomed a new framework for the leasing of commercial vehicles (CVs) to public sector users, with many of the largest players in the market now participating in it.
Andy Thompson: Irresponsible lending: more OFT rules for dealers and lenders
The Office of Fair Trading (OFT) is currently consulting on the terms of formal guidance to be issued on irresponsible lending practices. This concerns its licensing powers under the Consumer Credit Act (CCA).
Threat of restrictions on creditors’ use
(FREE) The Ministry of Justice (MoJ) will shortly be consulting with interested parties on the future availability of the edited electoral register This register, from which voters have the right to opt out (although relatively few do so), is presently available for commercial uses such as tracing debtors. Ministers announced this review following a legislative challenge to the continuation of the edited register in the House of Lords.
Andy Thompson: Scrappage bonus – subsidised finance can be an alternative, says BIS
The UK car scrappage allowance scheme is making a real contribution to stabilising the new car market The SMMT estimates that nearly 10 percent of sales in June went to scrappage allowance claimants
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Criminal charges brought in Gwent fraud case
FREE) The police investigation into the Gwent Fleet Management car dealership in South Wales has now resulted in criminal charges. The independent dealership was acting as a broker in purported sales of new cars supplied by unconnected franchised dealers (see MF June 2009). Some customers paid cash for the full car price and took possession, but found the vehicles had been sold to finance companies within a purported contract hire fleet.
Andy Thompson: Creating debentures – do financiers need belt and braces?
Some professional advisers recommend that asset finance companies, including those in the fleet market, should consider looking for additional legal security where possible Where the customer is a company registered within England and Wales, it is possible for creditors to create a debenture instrument to match the term of a lease or loan
Varying response on finance terms
The governments scrappage bonus scheme has had a varying impact on finance promotions around the new car market.
Andy Thompson: Churchill keeps up VAT challenge
The Churchill car insurance group appears to be pressing its case against HM Revenue & Customs (HMRC) in an important VAT appeal affecting equipment leasing.
New co2-based write off rules
New rules in the corporation tax regime are finally coming in for tax write offs on cars from 1 April Capital allowances (CAs) will now be tilted against cars with high CO2 emissions, instead of high-cost cars as before.