Category: Car Dealerships

How Cloud Bookkeeping for Car Dealerships Can Transform Accounts

Posted on by Sidra

Car dealerships in the UK handle high volumes of transactions daily. According to the Society of Motor Manufacturers and Traders (SMMT), UK dealerships sold over 1.9 million new cars in 2024, alongside millions of used vehicles. With average used car margins typically between 8% and 12%, accurate and timely financial management is vital for profitability. Cloud bookkeeping for car dealerships gives businesses the tools to manage this scale efficiently, maintain compliance, and protect margins. At Apex Accountants, we help dealerships implement tailored cloud solutions that deliver measurable results.

Real-Time Financial Data

Cloud bookkeeping platforms provide instant access to sales, purchase, and expense records. Transactions sync automatically from bank accounts, finance companies, and card terminals. This allows managers to track cash flow daily, plan stock purchases, and forecast revenue with confidence. When combined with the right accounting software for car dealerships, it is easier to analyse trends and spot potential issues before they impact profits.

Faster Invoicing and Payments

Delays in issuing invoices cause cash flow strain. With cloud systems, sales invoices are produced immediately after vehicle handover. Email delivery and integrated payment links encourage quicker settlement. Finance deals are tracked to ensure commission payments from lenders are never missed.

Stock and Margin Tracking with Automotive Bookkeeping Services

Dealership profitability depends on knowing the gross margin per unit. Cloud bookkeeping integrates with UK dealer management systems such as Kerridge, CDK Global, and Pinewood to pull in acquisition costs, preparation expenses, and final sales prices. This enables precise gross profit reporting per vehicle, highlighting top and underperforming stock. 

Automated VAT Compliance

Many dealerships use the VAT Margin Scheme for used vehicles. Cloud software applies the correct VAT treatment automatically, reducing HMRC compliance risks. It also meets Making Tax Digital (MTD) requirements, submitting VAT returns directly from the system.

Improved Multi-Site Control

For groups operating across several sites, cloud bookkeeping centralises all accounts on a single platform. User permissions allow branch managers, finance teams, and directors to view the data they need without duplication of work.

Reduced Admin and Greater Accuracy

Automation removes repetitive data entry. The system scans or receives supplier invoices by email, with AI matching them to purchase orders. It completes bank reconciliations in minutes and flags discrepancies instantly. This is one of the key benefits of modern automotive bookkeeping services, giving dealerships more time to focus on sales and customer service.

Case Study – Increasing Profit Visibility for a Used Car Supermarket

A large used car supermarket in the North of England approached Apex Accountants struggling with poor margin visibility. The business processed over 1,200 monthly transactions, but manual reconciliations and spreadsheet-based reporting made it difficult to see real-time profits on each unit sold. VAT Margin Scheme errors were also leading to costly HMRC adjustments.

We implemented a cloud bookkeeping system integrated with their Kerridge DMS, automating sales and purchase data entry. We set up automated VAT Margin Scheme calculations and built gross profit dashboards that updated instantly after each sale.

Within four months, the dealership gained accurate per-unit profit tracking, cut month-end reporting time by 60%, and improved the accuracy of cash flow forecasting. The management team now uses real-time data to adjust pricing, control prep costs, and optimise stock rotations.

Why Choose Cloud Bookkeeping for Car Dealerships with Apex Accountants

At Apex Accountants, we specialise in helping UK car dealerships gain control over their finances through smart, cloud-based bookkeeping solutions. Our sector expertise, combined with profound knowledge of dealer management systems, allows us to deliver accurate, timely, and actionable financial data. We also provide accounting software for car dealerships that integrates seamlessly with your daily operations.

Cloud bookkeeping is more than just a modern accounting tool – it is a driver of efficiency, compliance, and profitability. With the right setup, your dealership can reduce admin, improve cash flow, and make better strategic decisions based on real-time information.

Contact Apex Accountants today to see how we can help transform your dealership accounts and position your business for long-term growth.

Tax and Grants for EV Dealership in 2025

Posted on by Sidra

Electric vehicle (EV) sales in the UK are accelerating. 2025 offers new opportunities through targeted tax and grants for EV dealership schemes. At Apex Accountants, we work with EV dealerships across the country. We help them claim incentives, manage tax efficiently, and remain compliant. This article explains the key tax reliefs, funding options, and grants for EV dealerships in 2025. It also shares practical steps to help dealerships benefit fully.

Government Grants and Funding in 2025

The Plug-in Car Grant (PiCG) remains in place for 2025 but only covers approved low-emission models. The grant reduces the vehicle price for the customer, making sales easier for dealers. The current grant for qualifying cars is capped, and eligibility lists change regularly, so dealerships must check updates before quoting prices.

Dealerships can also benefit from the EV Chargepoint Grant, which helps cover the cost of installing electric vehicle chargers at business premises. This is especially valuable for dealers offering on-site charging for test drives and fleet preparation. Working with EV tax specialists ensures your business stays informed and maximises these opportunities.

Tax Reliefs for EV Dealerships

Dealerships purchasing zero-emission cars for business use may claim 100% first-year allowances under the Enhanced Capital Allowance (ECA) scheme. This means the full purchase cost can be deducted from taxable profits in the year of acquisition, creating a substantial tax saving.

VAT rules also help EV dealers. VAT can be reclaimed on qualifying zero-emission vehicles purchased for business purposes. This improves cash flow and reduces overall acquisition costs. Dealers selling used EVs to VAT-registered businesses may also apply the VAT margin scheme.

Employee and Fleet Tax Benefits

For dealerships that operate their own EV fleet or provide company cars to staff, Benefit-in-Kind (BiK) rates remain low compared with petrol or diesel models. From April 2025, the BiK rate for zero-emission vehicles increases from 2% to 3%. While still lower than petrol or diesel rates, dealerships should plan for the change with the help of EV tax specialists.

Environmental Compliance Advantages

Focusing on EV sales helps dealerships meet the UK’s Zero Emission Vehicle (ZEV) mandate, which requires a growing share of new car sales to be zero-emission. This also improves brand reputation and supports sustainability goals. Compliance often unlocks additional grants for EV dealerships linked to environmental performance and infrastructure investment.

How Apex Accountants Helps With Tax and Grants for EV Dealership

Apex Accountants provides sector-specific tax and grant advisory services for EV dealerships. Our specialists monitor all changes to EV tax rules, funding schemes, and compliance requirements. We help you identify eligible grants, claim the right tax reliefs, manage VAT effectively, and create financial plans that support growth in the EV market.

Contact Apex Accountants today to learn how your dealership can maximise tax savings and funding opportunities in 2025.

How to Choose the Right Car Dealership Business Structure in the UK

Posted on by Sidra

Choosing the right car dealership business structure is a key decision when starting out. At Apex Accountants, we work with car dealers across the UK to set up the most suitable structure for their goals. This article explains the main options available, their advantages, tax implications, and factors you should consider before making your choice. In the UK, most car dealers operate either as sole traders or through a limited company. Each has unique benefits and responsibilities, and understanding them will help you decide which fits your plans.

Starting as a Sole Trader in the Car Dealership Sector

Becoming a sole trader is the quickest way to start selling cars. You keep full control of the business, and all profits go directly to you. You only need to register for Self Assessment with HMRC.

This option works well for small, low-risk dealerships. It involves less paperwork and fewer compliance costs. However, you are personally liable for all debts and legal claims. If the dealership faces financial problems, your personal assets could be at risk. Getting early car dealership tax advice can also help identify deductions and allowances you might miss.

You also pay Income Tax and Class 2 or Class 4 National Insurance on profits. Many sole traders in the motor trade seek tax consultants for car dealers to stay compliant and reduce risks.

Setting Up a Limited Company for a Car Dealership

A limited company separates personal and business finances. This structure protects your personal assets if the dealership runs into debt or legal claims.

It offers potential tax savings. Companies pay Corporation Tax on profits, currently at 25% for profits over £250,000, with a small profits rate of 19% for profits under £50,000. You can take income through a salary, dividends, or both.

Running a limited company involves more administration. You must file annual accounts with Companies House, submit a Corporation Tax return, and maintain accurate records. If turnover exceeds £90,000 (2024/25 threshold), VAT registration becomes mandatory. Many car dealership owners seek assistance to navigate the complex rules regarding vehicle sales, part exchanges, and margin schemes.

Which Car Dealership Business Structure Should You Choose?

Sole traders enjoy simplicity and direct control. They suit smaller operations or start-ups testing the market. Limited companies provide stronger legal protection, better access to finance, and potential tax efficiency.

Your choice should match your risk level, growth plans, and financial position. If you aim to expand, attract investment, or protect personal wealth, a limited company may be the best option. Professional car dealership tax advice at this stage can help you choose with confidence.

How Apex Accountants Can Help

At Apex Accountants, we guide car dealers in choosing the best structure for long-term success. Our tax consultants for car dealers offer advice on tax planning, VAT compliance, and business setup. We help dealerships understand vehicle VAT margin schemes, capital allowances, and record-keeping rules.

Whether you need assistance for car dealerships or help structuring your business for growth, our team will provide tailored support. We ensure your dealership starts on a strong financial footing and stays compliant at every stage. Contact us today to discuss your dealership plans and get expert guidance from our team.

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