UV8 Report: Accounting for RFLs & FRFs on Pre-Registered Vehicles

Modified on Mon, 8 Dec at 2:50 PM

Report Purpose


The UV8 - Pre-Registered Vehicles report is a crucial compliance tool designed to identify all sales of pre-registered and ex-demonstrator vehicles. It is essential for ensuring the correct VAT treatment of Road Fund Licences (RFLs) and First Registration Fees (FRFs).


Key Accounting Risks & VAT Treatment

Fee Type

Correct Treatment for Pre-Registered / Ex-Demo

Compliance Detail

Road Fund Licence (RFL)

VATable (Standard Supply)

If the vehicle is sold with the balance of an existing RFL, the RFL amount must be treated as part of the total supply of a taxed vehicle (and therefore subject to VAT). Only a brand new RFL purchased specifically for the customer can be treated as a VAT-exempt disbursement.

First Registration Fee (FRF)

Cannot be Recharged

The Government's FRF cannot be recharged as a disbursement to the final customer, as the vehicle was already registered in the dealer's name when new. Recharging this is a common compliance error.

Analysis Workflow

  1. Run Report for Specific Period:

    • Run the UV8 report for a manageable, limited time period initially.

    • The report will identify all qualifying pre-registered and ex-demonstrator sales.

  2. Export and Calculate:

    • Export the report data to an Excel spreadsheet.

    • Use an Excel formula to calculate the date difference between the vehicle's Registration Date and the final Invoice Date.

  3. Prioritise Review:

    • Focus your detailed review on sales with the shortest time gap. These vehicles are most likely to have incorrect RFL/FRF charges due to being treated like new vehicles.

  4. Review Invoices:

    • Review the individual sales invoices identified to correct any incorrect RFL or FRF charges to ensure compliance.

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