Buying/selling cars as a side business?

wiltsguy_2

if you do not register as a trader and have the correct insurance etc, the auction house will send the V5 off in your name. Then DVLA will pick up on the fact that you are getting though a lot of cars and so will HMRC.

A private sell is just that - a private sell.

What you are looking at doing will class you as a trader, which means the rules are different. You will be subject to the sale of goods act etc.

If you want to do it then good luck, but my advice would be not to try and pretend to be private when your not, do it properly and build up a good reputation.

BeenThroughItAll

wiltsguy wrote: »

if you do not register as a trader and have the correct insurance etc, the auction house will send the V5 off in your name. Then DVLA will pick up on the fact that you are getting though a lot of cars and so will HMRC.

Whilst I agree that the OP's idea is ridiculous, do you have any evidence to show that DVLA have any kind of system in place to recognise a person 'getting through a lot of cars' within their monolithic organisation, or that they will communicate said information to HMRC if they do?


HMRC haven't crawled up my bottom yet, and I've had nine registration/deregistration cycles in the last 11 months. I haven't made any money (in fact I've lost a fair few quid along the way) out of it though, so I don't really care if they do.

EcoR1

BeenThroughItAll wrote: »

Whilst I agree that the OP's idea is ridiculous, do you have any evidence to show that DVLA have any kind of system in place to recognise a person 'getting through a lot of cars' within their monolithic organisation, or that they will communicate said information to HMRC if they do?


HMRC haven't crawled up my bottom yet, and I've had nine registration/deregistration cycles in the last 11 months. I haven't made any money (in fact I've lost a fair few quid along the way) out of it though, so I don't really care if they do.

But if you were doing it as a business then you'd pay less tax

BeenThroughItAll

EcoR1 wrote: »

But if you were doing it as a business then you'd pay less tax

True, but I'm not doing it as a business.

colino

From time to time HMRCs taskforces will look at driveway dealers and make an example of a few to scare off the rest. Do a bit of research on HMRCs Connect system and you'll know Big Brother is already here.

londonTiger

wow brits are a cynical bunch. If anyone mentions doing a side business it's automatically assumed that they intend to tax dodge.

Why do people do this? If you want to be helpful, give them actual advice that they need to register for self employment as soon as they start trading. And then have to do self assessment or get a bookkeeper to do theirbooks for them annually and submit their returns.

But bookkeeping for selfasessed business is so straighforward. If you've ever done budgeting or costings for your business you are competant enough to do your self assessment tax returns.

londonTiger

BeenThroughItAll wrote: »

Whilst I agree that the OP's idea is ridiculous, do you have any evidence to show that DVLA have any kind of system in place to recognise a person 'getting through a lot of cars' within their monolithic organisation, or that they will communicate said information to HMRC if they do?


HMRC haven't crawled up my bottom yet, and I've had nine registration/deregistration cycles in the last 11 months. I haven't made any money (in fact I've lost a fair few quid along the way) out of it though, so I don't really care if they do.

Agree, HMRC/DVLA are utterly incompetent and highlyunlikely for them to do this. It took them 15 years to finally contact ebay, get a list of sellers and send letters out to the sellers if they are not registered as self employed.

londonTiger

ps. you're going to be making £200 on each car tops. £400 a month you can easily done on ebay and would be less hassle. Just need someone to be at home to take delivery of your stock though - cos I doubt your work will appreciate taking delivery there.

ChumLee

londonTiger wrote: »

ps. you're going to be making £200 on each car tops. £400 a month you can easily done on ebay and would be less hassle. Just need someone to be at home to take delivery of your stock though - cos I doubt your work will appreciate taking delivery there.

Or use your local Argos eBay pick up point.

motorguy

londonTiger wrote: »

wow brits are a cynical bunch. If anyone mentions doing a side business it's automatically assumed that they intend to tax dodge.

Why do people do this? If you want to be helpful, give them actual advice that they need to register for self employment as soon as they start trading. And then have to do self assessment or get a bookkeeper to do theirbooks for them annually and submit their returns.

No assumptions made at all - the O/P said originally that they planned to be "buying & selling cars as a private seller", which is a common dodge by traders to avoid SOGA responsibilities, tax and VAT.

They also subsequently said "Okay, but why can't I just buy a car privately (one which already has MOT) and the sell it in a months time as a private seller?" which again suggests they want to avoid their SOGA and HMRC responsibilities.

So no assumptions made really - the O/P wants to duck and dive around their responsibilities.

Whilst several people have picked up on this and questioned it, the O/P has also been given good advice, both about being a legitimate business and about the pitfalls of part time motor trading.