The impact of tax hikes in the budget on dealers was thrown into sharp relief in accounts for Arnold Clark just filed at Companies House.
In the last set of accounts signed off by Eddie Hawthorne before he retired from the company, he said the tax rises would add £30m to the wage bill in 2025.
“The increase to Employer NIC rates, the lowering of the NIC threshold, and significant increases to national minimum wage rates, which come into effect in April 2025, are expected to increase our annual wage related costs by £30m,” said former Arnold Clark CEO in accounts filed at Companies House.
Yesterday Motor Trader reported that the increase in NIC alone would hit the bottom line for dealers in the Top 200 Dealer Groups to the tune of £160m,
“The Government imposed ZEV mandate, which sets BEV registration targets and potential large fines for Manufacturers, means that the UK new vehicle market will remain volatile throughout 2025.
Arnold Clark turned in a strong performance in 2024 with pre-tax profits up 4.3% to £121m on turnover ahead 38% to £5.2bn.
During the year it expanded its dealership network in a £25m expansion programme. This increased its representation with Renault, Peugeot, Citroen, MG, Fiat, Abarth, Jeep though new dealerships in Liverpool, Wirral, Cramlington, Kirkcaldy, Edinburgh, Aberdeen, Sunderland and Wallsend.
“We also embedded our new EV focused manufacturer partners BYD, Genesis, GWM Ora, Jaecoo and Omoda into our branch network structure. We now retail these brands through 10 of our locations and delivered 982 vehicles during the year.
In 2024 we donated £4.5m to various charities across the UK. with £1.4m being distributed through the Arnold Clark Community Fund.
