LEADING DMS provider, Dragon2000, is warning dealers to beware of systems that could leave them vulnerable to non-HMRC compliance.
According to Dragon2000, dealers should be wary of unsophisticated DMS systems, or web-based invoicing tools, that do not help users comply with current HMRC legislation or put the onus on the dealer to enter VAT rates and calculate VAT amounts.
Such systems offer little protection from human error, and leave the interpretation of sometimes complex accounting rules up to the dealer.
Ultimately dealers are responsible for ensuring their transactions comply with HMRC rules, as some have found out to their cost. Where accounting mistakes are made, dealers can fall foul of HMRC regulations and face hefty fines.
It makes sense to choose a dealer management system whose processes are designed to follow current legislation, such as Margin VAT single supply rules and changing IPT rates – that don’t allow dealers to make potentially costly mistakes when producing their invoices.
Mark Kelland, commercial manager at Dragon2000, said: ‘Some systems on the market can leave dealers exposed. Dealers may be using a system that they think meets their needs, but in fact is leaving them at risk of having incorrectly-declared VAT, which could lead to a hefty bill, or even fines.
‘Dealers need to ensure they will be guided by a DMS system they are considering, which will do the complex tax calculations automatically and produce compliant invoices. Here at Dragon2000, we constantly monitor HMRC legislation and ensure that our DragonDMS complies with the latest rules, regulations and rates.’
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