Motor trades
Accountants for Van Dealers and Light Commercial Specialists
Motor Trade Accounting offers specialist accounting support for van and light commercial vehicle dealers across the UK. Get help with commercial vehicle VAT, mixed stock and the trade buyers who make up much of your market.
Accounting for the commercial vehicle market
Selling vans and light commercials is not the same as selling cars. Many of your buyers are businesses that can reclaim VAT, which affects how you buy, price and invoice. Some of your stock will be bought with VAT charged and sold on a VAT-qualifying basis, while other vehicles bought from private sellers or non-registered traders may go through the VAT Margin Scheme. A specialist motor trade accountant helps you keep each vehicle on the right footing.
Commercial dealers also deal with fleet disposals, ex-lease vans, conversions and specialist bodies such as tippers, dropsides and refrigerated units. Preparation and conversion costs can be significant, and accounting for them against each vehicle shows the true margin on every sale.
The rules around double-cab pick-ups changed in April 2025, when they began to be treated as cars rather than vans for benefit-in-kind and capital allowances. That change matters to your business buyers and can affect demand, so it helps to understand it when you advise customers or plan stock.
What specialist support for a van dealer can include
Support is shaped around how your stock is sourced and who your buyers are.
- VAT on commercial vehiclesChecking whether each vehicle is sold with VAT charged in full or under the Margin Scheme, based on how it was bought.
- Stock book and Margin Scheme recordsKeeping the stock records HMRC expects for margin scheme vans alongside your VAT-qualifying stock.
- Per-vehicle profitRecording purchase, preparation, conversion and transport costs against each van to show real margins.
- Stock valuationValuing unsold vans at the lower of cost and net realisable value at the year end.
- Stocking financeRecording stocking or floor-plan loans and interest, and watching how long vans stay on the forecourt.
- Finance commissionAccounting for commission from lenders and keeping records that support your FCA obligations.
- Year-end accounts and taxAnnual accounts and tax returns, with planning for corporation tax or self assessment.
What to plan before you speak to an accountant
Pulling these together first makes the conversation far more useful.
Your stock sources
Note how vans come to you, such as fleet disposals, auctions, part-exchange or private purchases, as VAT treatment depends on it.
Your stock book
Have a current export from your stock system or spreadsheet showing purchase and sale details.
Conversion and preparation costs
Gather details of what you spend on conversions, racking, signwriting removal and preparation.
Finance arrangements
List the lenders you work with and how you are authorised to introduce customers to finance.
Good to know if you sell vans
VAT-qualifying vans and margin vans
A van bought with VAT charged is normally sold with VAT on the full price, which business buyers can usually reclaim. Vans bought without VAT may go through the Margin Scheme.
Double-cab pick-ups count as cars
Since April 2025, double-cab pick-ups have been treated as cars for benefit-in-kind and capital allowances. Business buyers may ask about this before they buy.
Commercial buyers expect proper invoices
Business customers need a full VAT invoice to reclaim VAT. Margin scheme invoices must not show VAT separately.
Trade plates come with conditions
Trade plates from the DVLA let you move unregistered or untaxed vehicles for trade purposes, but only within the rules on their use.
How it works
- 1
Tell us about your dealership
Send an enquiry covering your stock, buyers and the areas you need help with.
- 2
Speak to a specialist
An accountant who knows commercial vehicle sales arranges a call to review your VAT and stock records.
- 3
Get a proposal
You receive a clear outline of the work, including any record-keeping fixes that should come first.
- 4
Ongoing support
Regular figures, VAT returns and year-end accounts keep the business on track.
Questions van dealers ask
Can I sell a van under the Margin Scheme?
Yes, if it was bought without VAT being charged, for example from a private seller or under the scheme, and you keep the required records.
Why do business buyers prefer VAT-qualifying vans?
Because they can usually reclaim the VAT on a van used for their business, which lowers their real cost.
How do the pick-up changes affect my business?
Double-cab pick-ups are now treated as cars for benefit-in-kind and capital allowances, which may change what some business buyers choose.
How should I account for conversion work?
Conversion and preparation costs should be added to the cost of each vehicle so the margin on its sale is accurate.
Do I need FCA authorisation to offer finance?
Introducing customers to credit is a regulated activity, so you need FCA authorisation or appointed representative status. Take compliance advice on which suits you.
Who handles my enquiry?
A qualified accountant who works with motor trade businesses, including van and commercial vehicle dealers.
Know the margin on every van you sell
Tell us about your dealership and we’ll arrange a call with a specialist motor trade accountant.