How Many Cars Can You Sell?

[Nobbie]

As above, how many cars can you sell a year before you need to be classed as a dealer/the tax man comes knocking?

Or is it open to anyone??

[Byron]

5 cars registered to you within a 12 month period iirc

[Scoobler]

Isn't it a turn over of 55K a year before you have to declaire yourself to the tax man? For some reason I'm sure I remember someone saying that to me

Sureley 5 would be a daft no. I know in the past I have bought and sold more than 5 cars in a year, but they were for personal use I just got bored - never got told anything about being a car dealer.

[sean]

Its a grey area. There is no limit as such, it all depends on the trading standards/tax man stood infront of you & wheather he decides your trading or not.

I had a visit fom the trading standards about the 2 or 3 a month i sell, he basicaly just gave me pointers as to how i should be trading & went away. He was quite helfull.

With the tax man iirc you can earn 4 or 5 k a year without declaring but i think its still best to register with them weather you pay or not as the fines can be heavy if they decide you are trading more.

A trader doesnt register the cars to himself

[James82]

Isn't it a turn over of 55K a year before you have to declaire yourself to the tax man? For some reason I'm sure I remember someone saying that to me

Think you are thinking of the VAT registration threshold mate.

Nobbie - They will just look at certain things like the frequency of the transactions, how long you hold the cars for before you sell them, reasons for selling them (i.e for profit?) etc etc. Wouldn't risk it, can get very nasty. VAT man for example has more powers than the police!

[Nobbie]

So if i've sold 3-4 cars within 2 months, and brought 3-4 Cars within the same 2 month, all selling for profit, i could have a problem.

[Galahad]

So if i've sold 3-4 cars within 2 months, and brought 3-4 Cars within the same 2 month, all selling for profit, i could have a problem.

Only if they could prove it.

I've sold about 7 cars this year so far, but the 'profit' margins in most cases are so small that no VAT man would reasonably expect me to be making a living soley from that.

Once you start to get into serious money though, then you have some problems as it could be claimed you are making a living out of it, and could use it as your sole income.

You also then have the worry that if the VAT man thinks you are a trader and you want to continue, you then have to register for VAT, pay fines, and if he thinks your a trader, then you would have to declare yourself as such and any future customers would be entitled to more rights buying a car from you.

[Brett]

VAT threshold is currently £63,000 turnover in any 12 month period. You have to declare it and register for VAT within 30 days of exceeding it.

Dont think anyone will be getting near that though.

[Nobbie]

Excellent, thats what i wanna hear!

I'd basically need to sell more than 6 cars @ £10k each, to be exceeding that.

[James82]

Hold on, hold on ...

Tax and VAT are 2 different things and income is income whether it is your main source or not.

I am employed full time but also do some small jobs out of work under self employment. It's only a few hundred quid a year but it still has to be declared and is taxed. Very hard to escape paying tax!

You do not have to register for VAT until you reach £63k as Brett says but tax, totally different.

[D15RTY]

sure it was making profit on 6+ cars could leave you liable

[Astra Dan]

Bought Nobbie! Bought!

Also watch how you are with neighbours. A couple of mine at my old house thought I was a trader and were going to 'report me', simply becuase we had 5 or 6 cars in the household. I replied that a trader who registers and insures all his cars and keeps them for 3-4 years isn't doing very well....

[Trevor]

Trading Standards are more interested in the consumer rights aspect as as a trader you can not sell cars "sold as seen" they must be of merchantable quality and fit for purpose.

Every penny you earn the tax man is interested in especially if it is a second income.

[mr cav v6]

i have bought and sold 5 cars and 2 bikes with in the last 6 months and havent had a prob yet,

[playtimeover]

As above, how many cars can you sell a year before you need to be classed as a dealer/the tax man comes knocking?

Or is it open to anyone??

I can only sell 2 or 3 in a year. How about you?

[Joker]

I've sold a few cars and bikes this year, nothing majorly expensive but what he doesn't know doesn't hurt him, I pay enough tax on my fulltime job. Maybe they should concentrate on taxing benefit wan*ers and watch them squeel

[jo4nny8]

i was under the impression that you dont have to be vat registered to be a trader as vat is not charged on used vehicles, only commercials????

[Frisco]

Welcome to 2006. Sell your house now while its worth more than 50p

[GTE 16v]

I can only sell 2 or 3 in a year. How about you?

Thanks for bumping a 4 year old thread, well done you.


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