Motoring expert shares top tips for motorists when buying a new car
This article has been written by The Motor Ombudsman
With the new ’76 vehicle registration arriving in showrooms across England, Scotland and Wales on 01st September, as plates change for the second time this year, a motoring expert is offering top tips for those looking to get behind the wheel of a new car, to help consumers make an informed choice before signing on the dotted line.
Nail down a realistic budget
Before deciding which make and model to buy, you should work out what you can comfortably afford – not just at the outset, but also in the longer term. Car ownership brings costs, such as vehicle maintenance, insurance, fuel and charging, as well as road tax. These can all get more expensive over time, especially after any initial perks that come with the car expire, such as warranties and free servicing.
“It’s important to do the maths to ensure that your preferred make, model and fuel type is a viable proposition, not just now, but in the future as these can be subject to change due to factors such as inflation and global political events. This is especially relevant if you’re intending to hold on to the car for a good number of years”, says The Motor Ombudsman’s Bill Fennell.
Explore your payment options
As an alternative to buying outright, a finance package can help spread the cost of a new car. Hire Purchase (HP) usually involves a deposit followed by monthly payments, with ownership passing to you at the end of the term. Personal Contract Purchase (PCP) is similar, but typically includes an optional final payment if you wish to keep the vehicle instead of trading it in. Compare the total amount due over the contractual term to ensure you keep within budget.
Weigh up what matters most
To help choose the vehicle that will fit your day-to-day needs and lifestyle, write down a list of priorities for how you think you will be using the car, whether it’s for the commute, the school run, or longer journeys when going on holiday. This will help you decide on factors, such as boot space, the number of seats needed, towing capacity, and access to charging points, if you’re considering an electric vehicle, for instance.
Read first-hand reviews for added reassurance
Reading trusted reviews of different makes and models in the press or online can offer a useful indication of what a car is like to own and how it performs. It is equally important to look at feedback about retailers on reputable review platforms, and to buy from a trusted Motor Ombudsman-accredited franchise dealership or seller listed on its Business Finder.
Bill says: “While online searches and Artificial Intelligence (AI)-generated summaries can generate quick answers, it’s important to double check any details provided on websites are current, to avoid being at the mercy of out-of-date information when deciding what and where to buy.”
Explore delivery times
Around new registration plate periods, demand can be high, so you should confirm with the retailer what the expected lead times are, especially if the car is being manufactured according to your chosen specification. Also, ask for the expected delivery date to be confirmed at the point of ordering, so there is a clear record of what has been agreed should there be any build, shipping or handover delays.
Get everything in writing
Having all correspondence and paperwork documented, including anything that is agreed between you and the retailer, is essential when it comes to buying a car, as it is very difficult to verify what was said during any face-to-face conversations, should there be any subsequent issues. In addition, checking that all written information is accurate, such as the vehicle specification and any added extras ordered, is paramount before handing over any payment or signing any contracts.
Part-exchanging can help fund a new car
Part-exchanging your existing car at a retailer can be an effective way of getting a deposit or a contribution together to put towards a new vehicle, and offers a trusted route with greater consumer rights, compared to selling privately. There are also handy guides online that can give an estimate of what your car might be worth based on its age, condition and mileage, so it is useful to read up to get an indication on this before settling on a trade-in value.
Look at warranty cover and extras
When buying a new car, different types of warranties can be included by manufacturers, covering areas such as paintwork, batteries and issues originating from how the vehicle was made. A standard manufacturer’s warranty is typically three years, but can be as much as eight for some brands, so read up on what is included and how long they last for.
Furthermore, explore whether servicing plans, breakdown cover, home charging packages, software updates, apps and subscriptions to ‘unlock’ any additional vehicle functions, come as part of the list price or are available at an extra expense, as this all impacts the longer-term cost of ownership.
Ask about aftercare
Before taking delivery, ask what aftercare support will be available once you have taken the keys. This includes who your main point of contact will be if you have any queries, how any routine or ad hoc maintenance work should be booked, whether courtesy cars are offered at the time of service for instance, and what help is available when it comes to navigating things like software updates and apps.
Try before you buy
Taking a test drive of a showroom demonstrator across a mix of different roads, gives you the chance to assess comfort, visibility, driving position, space, and in-car systems before placing an order. It is also a valuable opportunity to ask the accompanying salesperson any questions about the car’s features, specification and day-to-day practicality.
Explain any concerns to the retailer
Should something not be to your full satisfaction during the purchase process or when you take ownership, it is always best to communicate any issues directly with the retailer as the first port of call, giving them the opportunity to put things right.
If the issue remains unresolved, you may then be able to escalate the complaint to a free-of-charge Alternative Dispute Resolution (ADR) provider, such as The Motor Ombudsman – a neutral third party that helps bring the dispute to a close in a fair and impartial setting.
Summing up the approach that motorists should take when buying a new car, Bill concludes: “The arrival of a new registration plate can be an exciting time for buyers. As this is often a significant financial commitment for many, it is vital that any purchase decision is not rushed, and is guided by thorough research. Consumers taking the time to compare vehicles, running costs, and using a reputable retailer, are all key considerations when choosing a car that is well suited to their budget, needs and lifestyle.”
Life Coach Kate Flory Katya Cox-Kruger, from Aberlour Children’s Charity, part of East Renfrewshire Council
This article has been written by local coach Kate Flory
We often think that readiness is having practical skills, the confidence and a willingness to take the next step in life. For some under 26-year-olds in East Renfrewshire, becoming ready for independent living requires support, encouragement and the opportunity to learn essential life skills in a safe environment.
For young people leaving care, moving into their own home can be both exciting and daunting. Alongside practical skills such as cooking, cleaning, shopping and budgeting, they are learning how to lead an independent life as part of their local community.
The programme also helps young people to become a good tenant, both the legal and social expectations from the landlord are taught. Knowledge that any first-time renters could benefit from.
Katya Cox-Kruger, Transformation & Redesign Programme Lead said, “additionally it is about learning the emotional side of living alone. How to build healthy relationships, feeling comfortable and confident in a home. All important life skills that we teach”.
The young people spend time imagining a new life, with a positive future outside of the care system. These aspects and more, are developed by living alone in a safe designated space known as a Training Flat.
To support these young people as they take this important step towards independence, Kapow Coaching has donated £500 towards decorating and soft furnishings for the Training Flat used by the young people taking part in the programme.
Future tenants will agree what to spend the budget on, such as mirrors, new wallpaper, cushions, to new bedding, and what else will make it feel more like a ‘home’. They will be tasked with doing the research for the best buys, where to find it, and then help to decorate the Training Flat.
At Kapow Coaching, we help individuals, teams and organisations navigate change when they are ready with our coaching, leadership and mental fitness programmes. Kate Flory, founder of Kapow Coaching says; “supporting this project feels like a natural fit helping young people build confidence and life skills for the next chapter of their lives.”
Tony Cochrane, Chartered Tax Adviser and Associate of the Institute of Indirect Taxation and is a director at VITA
This View has been written by Tony Cochrane is a Chartered Tax Adviser and Associate of the Institute of Indirect Taxation and is a director at VITA.
The construction sector has lived with the VAT Domestic Reverse Charge (“DRC”) since March 2021, but lately, HMRC’s attitude towards compliance has changed dramatically.
What began as a regime introduced to combat VAT fraud, with a promise of “light‑touch” enforcement, is now an area where HMRC teams are actively identifying errors, issuing assessments, and applying penalties with increasing confidence.
Many honest contractors and subcontractors are still grappling with the rules, and HMRC has clearly run out of patience. For businesses operating anywhere in the construction supply chain, now is the moment to get DRC compliance in order.
So, what exactly is the VAT Domestic Reverse Charge? In short, the DRC shifts the VAT accounting obligation from the supplier, typically the subcontractor, to the customer, typically the contractor, but only where certain conditions are met.
Under the DRC the subcontractor invoices without VAT, reporting only the net sale. The contractor accounts for VAT on their own VAT return, both the output and input VAT, and records the net purchase as normal. This mechanism was introduced as an anti‑fraud measure within supply chains considered high‑risk by HMRC.
The DRC applies when all the following conditions are satisfied:
– Supplier and customer are UK VAT‑registered
– The supply is standard‑rated or reduced‑rated
– The work is within the Construction Industry Scheme (CIS)
– The customer is registered for CIS
– The customer has not confirmed they are an end user
– The customer has not confirmed they are an intermediary supplier
It applies widely to supplies classified as “construction operations” for CIS purposes, including alteration, repair, extension, demolition and installation works, and includes goods supplied as part of those services.
It’s useful to know when the DRC does not apply, namely:
– The customer is not VAT‑registered or not CIS‑registered
– The customer has formally declared they are an end user or intermediary supplier
– The supply is zero‑rated, e.g. new‑build housing
– The supply is between connected landlords and tenants or group companies, where the correct notifications are in place
Everyone agrees that DRC is a challenge. Even businesses acting in good faith continue to struggle with implementation.
Common issues include:
– Misinterpreting the rules
– Assuming the “other party” will determine the correct VAT treatment
– Missing key details such as end‑user notifications
– Incorrect invoicing that fails to flag the application of the DRC
– Suppliers knowingly charging incorrect VAT to boost short‑term cash flow
These errors cause disputes, payment delays, poor cash forecasting and, increasingly, HMRC intervention.
Over the last few years, I’ve helped contractors and subcontractors with the following: resolve disputes; set up robust DRC controls; deliver team training; and challenge unfair HMRC assessments. Here are some practical issues we see daily followed by some tips to help navigate the DRC minefield.
1. Late Payments Caused by VAT Disputes
Uncertainty around whether the DRC applies can lead to invoice disputes, and contractors may refuse to pay until the VAT treatment is resolved.
This is particularly common where:
– CIS status is unclear
– End‑user notifications are missing
– Parties have made differing assumptions about the same service
The effect on cash flow is immediate and painful.
2. HMRC Is Actively Enforcing DRC Compliance
HMRC has moved far beyond its gentle, educational approach.
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We are seeing:
– More enquiries targeting errors in reverse charge accounting
– Assessments where VAT has been incorrectly charged
– Penalties and interest where systems or processes are inadequate
Worryingly, HMRC’s public webinars have not been updated to reflect this change, they still cover introductory points, while compliance teams on the ground are taking a far stricter stance.
It is essential that businesses have robust systems, accurate records and the ability to demonstrate correct decision‑making.
3. CIS Classification Confusion
A recurring issue is uncertainty over whether an activity qualifies as a “construction operation” for CIS. For example:
– Businesses assume an activity is within CIS when HMRC views it as marginal or outside scope
– Activities are mis‑classified because the terms used in the contract do not reflect the actual work
Getting CIS classification wrong often means getting the VAT wrong too.
4. Cash Flow Crunch for Subcontractors
Under the DRC, subcontractors no longer receive VAT from customers, removing a buffer many relied on for working capital. Some still feel the shock several years on.
Accurate DRC application is key to realistic cash flow forecasting.
5. Missing End‑User or Intermediary Supplier Notifications
End users and intermediary suppliers must confirm their status in writing. Without this:
– Suppliers must apply the DRC
– Customers risk incorrect VAT reporting and HMRC disputes
A simple written declaration is enough, no complex contracts required, but record‑keeping must be watertight.
6. Mixed Supplies and the 5% Rule
Where a supply contains both DRC and non‑DRC elements, the default is that the entire supply is subject to the DRC. The only exception is if the DRC element is 5% or less of the total value and both parties agree otherwise.
Documenting the rationale is essential.
7. Invoicing and Accounting Systems
Invoices must clearly state that the DRC applies and show the applicable VAT rate or amount.
System limitations often create risk, including:
– Software that cannot flag DRC services
– Staff issuing standard VAT invoices to “get things out the door”
– Inconsistent wording in templates
These errors attract HMRC attention.
8. Labour‑Only Subcontractors vs Employment Businesses
The DRC applies to labour‑only subcontractors where the subcontractor is responsible for the work and its outcome. It does not apply to employment businesses supplying staff.
The distinction depends on substance, not labels, and misclassifications are common.
Tips for Navigating the DRC:
– Check customers’ VAT and CIS status before invoicing
– Get written confirmation of end‑user or intermediary status
– Train staff on when the DRC applies
– Update contracts and terms to include DRC obligations
– Review subcontractor cash‑flow forecasts
– Maintain clear records for audit and HMRC enquiries
– Get advice early – DRC issues escalate quickly if left unresolved
In summary, the VAT Domestic Reverse Charge is now embedded in the construction sector and HMRC is clearly determined to enforce it.
While the rules aim to prevent fraud, they create real‑world challenges for compliant businesses. The best protection is clear communication, strong processes, and a willingness to seek proven professional guidance where needed.
Chair of Federation of Small Businesses Scotland, Guy Hinks
Written by Glasgow View Reporter, Liam Eunson
The Federation of Small Businesses (FSB) has today urged the Scottish Government to use January’s Scottish Budget to protect small businesses facing significant non-domestic rates rises.
Some of the stalwarts of local high streets, including independent pubs and post offices, are facing huge rates rises in April as a result of the latest revaluation of their properties. Small accommodation providers across the country have also received draft notices which would see their rates bills soar by up to 400%.
In a letter to Public Finance Minister, Ivan McKee, FSB is calling on the Scottish Government to introduce measures in its forthcoming Budget to ensure small businesses are protected from a significant tax increase on top of existing cost pressures.
Guy Hinks, FSB Scotland Chair, said:
“The prospect of dramatic increases in their business rates couldn’t come at a worse time for small businesses when economic conditions are already extremely challenging. That is why it is so important the Scottish Government uses the opportunity presented in its Budget in January to protect hard-pressed small businesses.
“Ever increasing costs, combined with turnovers that are now falling, means profitability is being squeezed out of local businesses. The last thing they need is the rates revaluation turning into another costs nightmare in April.
“Any boost those in the retail, hospitality and leisure sectors may have been hoping for during the so-called “golden quarter” in the run-up to Christmas could be wiped out by the looming increase in their rates bill come the spring.
“We are asking the Scottish Government to take sensible steps to protect many otherwise robust businesses. They have options at their disposal. Taking action now means they are more likely to be able to weather the current economic storm and come out the other side in a position to continue serving local communities and supporting local jobs.”
FSB is calling for the Scottish Government to reduce the multiplier used to calculate final rates bills. The results of the draft 2026 revaluation mean that freezing the multiplier as in previous years may no longer be enough to mitigate the extent to which rates bills will increase next year, it said.
Mr Hinks added: “Given the scale of some of the increases to rateable values we are seeing, we are concerned that even a freeze will mean the Scottish Government’s commitment to keep 100,000 businesses out of non-domestic rates altogether will be eroded even further.
“That’s why we’re also calling for the introduction of a new, reduced multiplier for those businesses in the retail, hospitality and leisure sectors, mirroring actions taken in England and Wales.”
With a significant proportion of small businesses facing increases to their rateable values, this may mean they lose the rates relief they receive through the Small Business Bonus Scheme (SBBS).
FSB is therefore calling on the Scottish Government to use January’s Budget to restore the thresholds for SBBS relief to at least the levels they were set at before they were reduced in 2023. At the absolute minimum, transitional relief for those impacted by the most significant RV increases is essential, it added.
