Car dealers pretending to be private sellers

colino

After the harmonisation of EU laws, only back-street chancers believe that buying another burn phone and pretending to be an ordinary member of the public exempts them from the 2008 Unfair Trading regulations.

londonTiger

motorguy wrote: »

Its traders trying to avoid their responsibilities under the SOGA, and moreoften VAT and TAX too.

vat not applicable for used car sales, vat is absorbed fully by the first owner.

Tax, meh. Risky running a car sales business in cash only in private residence. You're asking to get burgled and cleaned out,

SOGA possibly. I think it's far more likely that they are evading business rates by parking cars on the road. And not having business property (rent). For a forecourt business rates could easily be 1 grand a month. they do not want to present themselves as a business and have customers drive down to a residential road.

its not a business where you necessarily need business space, if you can save yourself 2 grand a month in overhead you would. That's 1 persons wages!!

colino

"vat not applicable for used car sales, vat is absorbed fully by the first owner." Thanks londonTiger, please give me your address and you can sort out my books. Clearly I'm due a fortune in overpaid tax.
You start a post with such an unbelievable falsehood, no wonder the BS goes downhill from there.

motorguy

londonTiger wrote: »

vat not applicable for used car sales, vat is absorbed fully by the first owner.

No. Once you breach the VAT threshold, which you would do very quickly selling cars, then you pay VAT through the 'VAT margin scheme' - basically VAT on your profit margin.

londonTiger wrote: »

Tax, meh. Risky running a car sales business in cash only in private residence. You're asking to get burgled and cleaned out,

Moreoften these people arent running a 'business' - they're buying the odd car from auction and flogging it on. We're not talking about a row of cars and bunting in your front garden.

londonTiger wrote: »

SOGA possibly. I think it's far more likely that they are evading business rates by parking cars on the road. And not having business property (rent). For a forecourt business rates could easily be 1 grand a month. they do not want to present themselves as a business and have customers drive down to a residential road.

Parking a car at the side of the road with an advertising board on the windscreen is free advertising and keeps the prospective [STRIKE]victim[/STRIKE] customer away from the traders home.

londonTiger wrote: »

its not a business where you necessarily need business space, if you can save yourself 2 grand a month in overhead you would. That's 1 persons wages!!

No one ever said it was, though traditional car selling tends to be via a forecourt.

These people who advertise as private sellers and change their disposable phones often are bottom feeding lowlife who exploit the system at every opportunity - whether that be rate avoidance, tax avoidance, VAT avoidance, SOGA avoidance.

londonTiger

motorguy wrote: »

No. Once you breach the VAT threshold, which you would do very quickly selling cars, then you pay VAT through the 'VAT margin scheme' - basically VAT on your profit margin.

Yes, sorry about that, completely forgot about the VAT margin scheme. Don't really deal with second hand goods, although I did buy a used computer from a vat registered seller once who said they were on vat margin for this product.

They might be pushing the VAT limit (75-80k sales per annum). Though it's probably unlikely being a small time trader from home.

colino

The VAT threshold is £79,000 and the Margin Scheme is just one facet of VAT accounting. When your in a hole, stop digging.