What's my turnover?

Uncertain

kazwookie wrote: »

I'd be putting the 10K on a fixed rate interest account, then at least you know where the money is, and what rate of interest you are getting.

3% gross fixed and untouchable for three years at best at the moment!

Obviously the OP is taking a much higher risk but if he is willing to do so in exchange for a significantly higher return then that is up to him.

Evilm

You need to go speak to a proper accountant and have them sort this out.

davec1960

xfish wrote: »

99% of the time it's a bank transfer, sometimes to garage's account, more often to initial seller.
After the car is sold the garage is paying me.

Money being transferred to the garages account is a loan, so your turnover is the comission.
Paying the initial seller for a car and then receiving payment of purchase price plus commission when it is sold could be seen as you buying and selling the cars, turnover would then be based on the selling price of the cars.

You need to see an accountant to ensure that payments to sellers are somehow structured and recorded as loans to the garage or stop paying sellers directly.

DCFC79

xfish wrote: »

And how exactly did you help with your post?

What was wrong with my post ?

I was just saying after all these years 1 shoul;d know what turnover is.

Sorry if itwasn't a reply you were expecting.

Firefox1975

Think it is all legal then

the inherent risk is that you buy teh car on behalf of the garage, you become a creditor to the garage for £10,000. the car sits on their forecourt IN THEIR NAME.

if they go bust, you could potentially lose the £10,000 with NO ENTITLEMENT WHATSOEVER to the vehicle.

I would go see an accountant to get a proper contract signed up which would allow you a first charge on whichever vehicle was bought with your loan - that way you are covered.

However, to answer your actual question and personal advice aside.I beleive you would need to be turning over £65k plus in commision to have to register for VAT, so that would be roughly 4 or 5 cars a month. Are you lending them £50,000 a month? if they go bust that's alot to lose.

xfish

Firefox1975 wrote: »

However, to answer your actual question and personal advice aside.I beleive you would need to be turning over £65k plus in commission to have to register for VAT, so that would be roughly 4 or 5 cars a month. Are you lending them £50,000 a month? if they go bust that's alot to lose.

I definitely don't get £65k plus in commission per year (max 20-22k). (I don't know where you took this 4-5 cars per month though; £1000-£1500 a month I wrote about was a month commission not per car)
I lend them more than £50k a month. I know there is always some risk involved but I'm ok with that.

So thank you once again for personal advices but all I want to know is "Do I need to register for VAT ?".
From answers so far I think I don't have to
I will ask an accountant as well.

colino

Your having a laugh. "Lending" £600,000+p.a. to a garage you work for and after three years aren't sure what turnover is?
Get yourself down to a very, very good accountant straight away to cover you before HMRC (especially that cheeky little VAT man) are on your tail. The list will start with illegal moneylending, tax evasion and throw in shadow directing too.

meer53

xfish wrote: »

I definitely don't get £65k plus in commission per year (max 20-22k). (I don't know where you took this 4-5 cars per month though; £1000-£1500 a month I wrote about was a month commission not per car)
I lend them more than £50k a month. I know there is always some risk involved but I'm ok with that.

So thank you once again for personal advices but all I want to know is "Do I need to register for VAT ?".
From answers so far I think I don't have to
I will ask an accountant as well.

Look, call the number on this website, they'll give you free advice.
Its no good "thinking" you don't have to register, the amount of money you're investing isn't a small amount, whether you think there is no risk, there's a huge risk if you're not VAT registered and you should be.

http://www.hmrc.gov.uk/

Annisele

I agree with Uncertain and the others who are saying first speak to an accountant, then HMRC.

I don't think you need to be registered for VAT, but given the amounts you're talking about I'm not sure it's clear where your personal business ends and the garage business begins. Most employees don't lend their employers that amount of money.

If you have done anything that HMRC won't like, it's best to speak to an accountant about how best to tell HMRC you've done it.

James1968

I believe that there is a requirement for a license to lend money if done as a business and this sounds like a business arrangement to me.

You need to get legal or one day you might end up losing the lot and get stuck in jail. Btw, why is the garage relying on other people to lend it the cash to buy cars to sell-on?. Sounds very dodgy to me. If I ran a garage and started buying cars to sell-on, I would not want to give any money away in commision as that would eat into my profits.