When can a motor trader sell a car privately?
Discussion
Hi,
Having just recently started as a part time from home motor trader I am wondering what happens when I want to sell my personal vehicles. I run two personal vehicles which were purchased before I became a trader. I presume I can sell these as a private sale?
What about my future vehicles? Is there any criteria that must be met to sell a car as a private sale, e.g. registered to me, been taxed by me, owned a certain length of time etc?
Yes, I am a bit naive but any advice/opinions appreciated.
Cheers
Having just recently started as a part time from home motor trader I am wondering what happens when I want to sell my personal vehicles. I run two personal vehicles which were purchased before I became a trader. I presume I can sell these as a private sale?
What about my future vehicles? Is there any criteria that must be met to sell a car as a private sale, e.g. registered to me, been taxed by me, owned a certain length of time etc?
Yes, I am a bit naive but any advice/opinions appreciated.
Cheers
Advice I heard once, how accurate I don't know, any vehicle bought with the intention of making money on should be declared, trader or not, so if was only for personal use not an issue. However, do you use it at all for any work based duties so a percentage of it would be tax deductible?
Possibly a dumb comment but - presumably if your ownership of your car predates your trader status then the vehicle is not on your books as "stock".
So accounting wise, if you sold it through the business, how would you determine the level of profit that was taxable, given the business doesn't own the vehicle?
So accounting wise, if you sold it through the business, how would you determine the level of profit that was taxable, given the business doesn't own the vehicle?
Thanks to everyone for their comments.
As I thought, it is more down to intention when vehicle purchased and maybe what would be considered reasonable use.
As for being a trader long? Maybe, maybe not, but as a second income which I enjoy doing it only has to cover my insurance costs, trade plates etc to be worth doing so I think I'll be alright.
Thanks again all.
As I thought, it is more down to intention when vehicle purchased and maybe what would be considered reasonable use.
As for being a trader long? Maybe, maybe not, but as a second income which I enjoy doing it only has to cover my insurance costs, trade plates etc to be worth doing so I think I'll be alright.
Thanks again all.
Its not just about the tax implications, you also need to consider your "reputation". Suppose you sell your own personal car and it develops a fault, how would you handle that? Whilst you may not need to worry about the tax/profit/loss side of things, you telling the buyer "hard luck mate, no warranty its a private sale" is hardly going to help future business! I would suggest you selling your own car with your standard back-up, or outing it through the trade.
You're either a professional trader or you're not. If you buy and sell cars as a business activity you are defining yourself as having expert knowledge (it doesn't even matter if you make a profit or a loss).
Consequently you'd be hard pushed to prove that you put that knowledge to one side and sold a car as a 'private' non-expert seller.
If all your cars are covered under a Motor Trader policy you are even further up the creak with no paddle.
In any case if the cars you sell are sound it should not concern you conscience; if you're trying it on then tough.
Consequently you'd be hard pushed to prove that you put that knowledge to one side and sold a car as a 'private' non-expert seller.
If all your cars are covered under a Motor Trader policy you are even further up the creak with no paddle.
In any case if the cars you sell are sound it should not concern you conscience; if you're trying it on then tough.
There is nothing sinister at work here! I am thinking of selling a car I've owned for 5 years. It is currently on it's own insurance policy as would cost more to cancel than keep until expiry.
One of the mediums I advertise on is Gumtree. I came to place the ad and was not allowed to select 'private' as I had previously listed under 'trade'.
Looks like selling as trade only is the way to go. It will only be a couple of personal vehicles a year at most anyway.
Thanks again for the input.
One of the mediums I advertise on is Gumtree. I came to place the ad and was not allowed to select 'private' as I had previously listed under 'trade'.
Looks like selling as trade only is the way to go. It will only be a couple of personal vehicles a year at most anyway.
Thanks again for the input.
Sell car, car develops fault within 6 months, sorry private sale, caveat emptor.
Sell car, car doesn't develop fault within 6 months, business sale covered by my comprehensive in house warranty which would have fixed any fault including wear and tear.
Seems pretty straight forward to me.
Sell car, car doesn't develop fault within 6 months, business sale covered by my comprehensive in house warranty which would have fixed any fault including wear and tear.
Seems pretty straight forward to me.
Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff