Car boot dilemma

stephent82

I went to a car boot last week and done pretty well and therefore I am thinking about going back next week. I plan to supplement my 'junk' (aka treasures) with a few new items - I got a very cheap box of kitchen gadgets. I was also planning to buy a box of chocolate bars to sell. The dilemma I face is, in the eyes of the law, will I now be seen as a trader?

I don't mind registering a company, however with a profit being (at most) £4 or £5 will it be worth it? Also, does anybody know how I would go about doing this and are there costs involved?

Thanks

Shezz

I'm pretty much sure that if your buying anything to sell with the intentions of making any sort of profit then yes in the eyes of the law you will need to declare it, but am sure someone will be able to let you more indepth as to what or what you cant do, selling your own stuff (cash in the attic) then thats ok

stephent82

Shezz, that is what I have found. I was wondering whether or not is is worth it - the costs involved and suchlike. I am also on JSA right now, and would be interested in knowing how this would be affected.

fred7777

In the eyes of the law you will be a trader.

You don't necessarily have to register a company to do this you can set up as a sole trader (you can find some information here):

http://www.completebusinessstartup.co.uk/starting-business/sole-trader.html

You should notify HM Customs and Revenue and your responsibilities and the work involved could be as simple as sending a balance sheet showing expenditure, income and profit.

However realistically they aren't going to be bothered about the £4-5 profit you make next time.

I would only worry about this if you decided to make it a regular thing and your profits increased.

tco03

There is good money to be made car-booting if you are prepared to travel and collect up others old junk.
Freecycle is a great start iv given away bags of stuff on there and theres always landlords chucking out tenants old items that they fail to remove themselves.

I dont see any need to be selling chocolates and stuff...

JimmyTheWig

I agree with the others. It's the same as selling on eBay. If you are buying stuff in order to sell it then you are a trader.

You just need to keep a record of what you buy (and for how much) and what you sell (and for how much). You only need to pay tax on the difference, so it's not a big deal.
You'll need to do a tax return, but that's easy enough.

What it does to your benefits, I have no idea.


One thing, though. If you're getting stuff off Freecycle to sell, I'd mention this in your first email to the person giving it away as otherwise this is frowned upon at best.

stephent82

Thanks for all the replies.

To be honest I hate being on JSA. I have had a job ever since I was 16 and all I want to do is earn my own money. If I could earn near-enough my JSA every week I would much rather do that than take the hand-out.

I have done a bit of research, I would be required to pay £2.50 NI per week ontop of tax. My JSA would be stopped but I may be eligible for other benefits. I have spoken to a few people and have been told that unless I am able to clear about £80-£100 in profit each week (taking into account bad weather etc.) it isn't worth it as re-investment is key. So, a it stands I am better off on benefits than trying to make my own way in the world... the system isn't right!

gravitytolls

`You're allowed to keep the first £20 of your earnings, any more and it will be deducted from JSA. It's not about a faulty system, it's about survival.

Work more than 16hrs per week, you could qualify for working tax credit to supplement your income.

JimmyTheWig

stephent82 wrote: »

I would be required to pay £2.50 NI per week

Unless you're earning loads (in which case it doesn't matter) you can get a small earnings excemption on this if you don't want to pay it.
[Note that there are benefits to paying it if you wanted to, though.]