Lets say i wanted to buy and sell a "few" i think the dvla only allows 7x per year to one person is this correct?
You guys that sell do you have trade insurance to run all and your own cars?
Can i stip cars and sell parts legally?
Not wanting to do anything illegal here so please don't think i am!
{moves to discussion, made non make/model specific as appears a general question rather than about Audi A5 & S5}
Edited by Dynamic Dave on 30/09/2009 at 13:32
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Don't worry about DVLA, but think of your local Trading Standards. Seek their advice before you even think about venturing into this market. There are so many pitfalls and you wouldn't believe what you can be hit with if you get any complaints. Be especially aware of The Consumer Protection from Unfair Trading Regulations 2008. Read it.
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forgot to mention Sale of Goods Act (SOGA)
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I wouldn't bother trading standards - they'll be too busy and aren't a free advice centre. For some reason they seem to be considered a combination of God and a Free Legal service on this forum. The reality is that used cars are way down their priority list and aren't really interested from either the buyer's or seller's point of view unless they come across somebody flogging 20 clocked and unroadworthy cars.
You should make yourself aware of the Sale of Goods Act - easily researched on the internet. Don't be scared buy it, it is common sense really. You can't flog somebody a £6k car and it blow up down the road and not expect to take some sort of responsibility for it. Equally, you can't have a customer come back with a £1k car with a sticking electric window.
The important thing is this: if you are buying and selling as a business for profit you are trading. It doesn't matter if it is 1, 7 or 700 cars per year. It is a business and no different to any other: accounts, records, tax submissions, VAT regsistration (if necessary) all need to be kept and you are liable for trader responsibilities rather than as a private seller.
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Just to add: for some reason people seem to think cars come under some sort of different rules to any other business. They do not.
The basics are the same if you are buying and selling cars as if you are buying and selling fruit, wicker baskets, soft toys, old bits of HiFi or jet engines. Same rules, same consumer law, same records to be kept.
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ok thanks for the advice but when and how can anybody say it's a buisness?
I buy one repair it get a 12 month mot flog it for a profit does that make it buisness so i have to pay tax?
Is there a certain amount you can earn before paying tax im told there is from a buisness man who is correct?
Just don't want somebody knocking on the door if i have to make it a buisness all fair and good but just to make a few quid why bother.
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No one is interested if you buy and sell a few cars a year.
It's a bit like doing 75mph on the motorway - strictly speaking it's not quite right, but the number of people who get into bother for doing it is tiny.
But if you are buying and selling a few cars each week, you may attract some attention from the taxman.
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Technically anything you do for profit it a business. However, the 75mph is a good analogy. Quite how bothered HMRC are going to be over a £100 tax liability is somewhat open to question....
:)
Edited by pd on 30/09/2009 at 21:39
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ask not how can i not pay tax
but
how soon will someone bubble my income
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Thanks more fair points, plenty folk sell on e bay and do quite well but don't pay tax, im looking at working from home buying a few a year working outside with no garage and the british weather won't be doing that many.!!
Thanks all for the advice. Tony.
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Tony,advise is always free,im sure its been said before but we live in a country of very jealous people and one of your neighbours will report you if they think you have a shilling more than them in your pocket,remember these same people are probably ripping their employers off daily
Declare the tax if you make a profit as its so much easier than having the buff letter through the letter box in years to come telling you what the amount youve been assesed on,ive seen so many peoples lives crumble because they thought they had fooled the system
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Tony advise is always free im sure its been said before but we live in a country of very jealous people and one of your neighbours will report you if they think you have a shilling more than them in your pocket remember these same people are probably ripping their employers off daily Declare the tax if you make a profit as its so much easier than having the buff letter through the letter box in years to come telling you what the amount youve been assesed on ive seen so many peoples lives crumble because they thought they had fooled the system
Right as ever.
MD
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Right as ever. MD >>
Ditto.
Shame, though, about the conflicting advice given by another helpful poster further up:
" No one is interested if you buy and sell a few cars a year. "
As Mapmaker has said previously on other threads, the Revenue could become interested even if you sell one car in the course of business.
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...Shame, though, about the conflicting advice given by another helpful poster further up:
" No one is interested if you buy and sell a few cars a year."....
jbif,
Apologies,
I should have preceded the post with "In the real world..."
That's what many people are interested in, even if you might not be.
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Good luck to anybody trying to make a bit of cash.But if you live in a residential area it can soon be come a nuisance to the neighbours regarding noise and parking.
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IF you gain the major proportion of your income from another source (Employed or Self-employed) then I SUSPECT that you MAY be able to sell a few cars without attracting HMRC. However if you have no other visible means of support then you are clearly a trader and will be subject to the same rules as the rest of us mere mortals with all of the BENEFITS that that brings.
Please don't think for a moment that you are smarter than them because you are not. Neither am I or ANY of the posters on here. I could go on as you all know, but it would serve no purpose.
For the benefit of brevity I will refer you to BB's 'Buff envelope' comment. As far as I am concerned it says it all and is FINAL.
Good luck.
Mods, sorry for the caps, but for the life of me Italics and the like are not the same here as on my PC.
Thanks to all....................MD
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