how many cars can you sell before your a dealer?

how many cars can you sell before your a dealer?

Author
Discussion

McSam

6,753 posts

175 months

Tuesday 14th May 2013
quotequote all
GR8GUY said:
Its been a while since last post on this thread. Does anyone have an updated answer on this question ? How many cars can you sell before being classed as a dealer and answerable to the tax man ?
You could at least have read it hehe

If you buy and resell a single vehicle with the view to making a profit, you're a trader.

If you buy and sell a dozen cars over the year, running each one personally for a while because you like trying different stuff out, you're not a trader.

Couldn't really be any simpler than that.

F1GTRUeno

6,354 posts

218 months

Tuesday 14th May 2013
quotequote all
I'd advise you learn the difference between your and you're before you think about entering business.

V8RX7

26,870 posts

263 months

Tuesday 14th May 2013
quotequote all
McSam said:
If you buy and sell a dozen cars over the year, running each one personally for a while because you like trying different stuff out, you're not a trader.
That's what my Dad thought and one day HMRC presented him with a large estimated tax bill.

GR8GUY

14 posts

140 months

Tuesday 14th May 2013
quotequote all
I did read the answers but there doesnt really seem to have been a definite agreement smile Its been 18 months and i'd hoped someone may have found a link to some DVLA OR government legislation somewhere. Has anyone ever heard of a private seller being punished or fined for trading ?

V8RX7

26,870 posts

263 months

Tuesday 14th May 2013
quotequote all
GR8GUY said:
I did read the answers but there doesnt really seem to have been a definite agreement smile Its been 18 months and i'd hoped someone may have found a link to some DVLA OR government legislation somewhere. Has anyone ever heard of a private seller being punished or fined for trading ?
On Tax / Law there is no definite agreement hence why there are so many solicitors and accountants.

Yes - my Dad - see the post above yours.

SMcP114

2,916 posts

192 months

Tuesday 14th May 2013
quotequote all
I was told by Trading Standards themselves that they use 6 cars per year as a rough guideline, then it comes down to whether or not you're making a profit from it. So in essence you can sell as many as you want as long as you're not doing it or the sole purpose of making money.

I took this that they hadn't a clue and it is quite a grey area.

Went through a long winded case with them last summer, I wouldn't recommend it.

GR8GUY

14 posts

140 months

Tuesday 14th May 2013
quotequote all
That number 6 seems to have cropped up a few times now. It would be good if was 6 per person rather than 6 per household. laugh

Reeman

3 posts

91 months

Tuesday 27th December 2016
quotequote all
LEGAL AND LAWFUL LOOP HOLE
regester it in your name if you insure and tax it which you dont have to it will strengthen your case .....the bill of rights act 1689 which is a scroll in the houses of parliment that puts judges ware they are now says your propert is you property and you can sell when you see fit and no governmemt can interfear .......check out bill of rights act 1689 clause 2 section 12 .....no fine of forfiture can be imposed on any said person with out going to court and is null and void and ilegal

Roger Irrelevant

2,932 posts

113 months

Tuesday 27th December 2016
quotequote all
Reeman said:
LEGAL AND LAWFUL LOOP HOLE
regester it in your name if you insure and tax it which you dont have to it will strengthen your case .....the bill of rights act 1689 which is a scroll in the houses of parliment that puts judges ware they are now says your propert is you property and you can sell when you see fit and no governmemt can interfear .......check out bill of rights act 1689 clause 2 section 12 .....no fine of forfiture can be imposed on any said person with out going to court and is null and void and ilegal
1689 is roughly when this thread was last 'live' before your post, so thanks for that. Can I hazard a guess that you're not a lawyer?