selling used cars from home
Discussion
Im new to this forum i am after some advice on buying used cars fixing them and then selling them on for profit but i am unsure of the legalities of insurance for road testing and customers testing , tax on any profit i make and the amount of cars i am able to buy and sell before i have to declare myself as a trader and then do you have to have a business address also the legalities of buying cars to scrap for parts to sell on for profit from home selling them on ebay do you need a license for this or can you buy the cars strip them and declare any profit with hmrc any help would be appreciated
You're a trader as soon as you buy a car with the intention to sell it on for profit.
Trade insurance and trade plates essential to move cars around legally etc
If you don't own your home but rent it, expect a f
k ton of trouble if your landlord/their agent find out what you're doing
Breaking cars requires a licence for dealing with waste I believe (and is a massive pain in the hole - think about what you'll do with the 60%+ of the car that you're stuck with)
http://www.hmrc.gov.uk/selfemployed/ FYI
Trade insurance and trade plates essential to move cars around legally etc
If you don't own your home but rent it, expect a f
k ton of trouble if your landlord/their agent find out what you're doingBreaking cars requires a licence for dealing with waste I believe (and is a massive pain in the hole - think about what you'll do with the 60%+ of the car that you're stuck with)
http://www.hmrc.gov.uk/selfemployed/ FYI
soad said:
I assume you have a driveway, including a garage (not parking cars all over the road etc)?
Too many cars, too much mess = too many complaints (to the local Council) - and you've a problem!
Seems common though - I bought some parts from someone breaking a car at home the other day, in a shared residents' parking area, spilling oil, pas fluid etc all over the ground, lovely!Too many cars, too much mess = too many complaints (to the local Council) - and you've a problem!
There is a big difference between buying a car now and then, and selling it on, and being a trader.
I have a mate who is always on the lookout to buy a car with a bit of profit in it, he does this maybe twice a year...
He enjoys trawling the local papers, enjoys fixing the car, tidying it up, but hates the selling bit!
One trick he has used many times is when he is out delivering, he keeps an eye open for cars with Rusty brake disks, which indicates they have stood. He then pops a note under the wiper with his phone number.
Last year he saw a tidy 2002 Audi TT with rusty discs, so he popped a note under the wiper. A few days later he got a call from a girl to say that she wanted rid of the car as it had broken down again and she was sick of it... he gave her £300 for it! They had a nice holiday out of the profit of that one last year!
I have a mate who is always on the lookout to buy a car with a bit of profit in it, he does this maybe twice a year...
He enjoys trawling the local papers, enjoys fixing the car, tidying it up, but hates the selling bit!
One trick he has used many times is when he is out delivering, he keeps an eye open for cars with Rusty brake disks, which indicates they have stood. He then pops a note under the wiper with his phone number.
Last year he saw a tidy 2002 Audi TT with rusty discs, so he popped a note under the wiper. A few days later he got a call from a girl to say that she wanted rid of the car as it had broken down again and she was sick of it... he gave her £300 for it! They had a nice holiday out of the profit of that one last year!
I am hoping to have a garage built but wanted to know the legalities of it before i started to see if its worthwhile or not how much on average would traders insurance cost im 25 male working ft and looking at improving my income by buying and selling cars for profit so you would declare yourself as a trader and would need traders insurance and trade plates and how would you declare any profits with hmrc do you Do a self assessment also could you run it as a business from a home address or would you be best getting a premises elsewhere to do this
Bearing in mind it is now impossible to buy a taxed car - without trade insurance and trade plates how could you possibly move any "stock" from A to B or have anyone take a legal test drive in it?
If you want to be yet another shyster who declares nothing tries to slip under the radar, don't bother, it's a crowded market for you.
If you want to be yet another shyster who declares nothing tries to slip under the radar, don't bother, it's a crowded market for you.
Trade insurance is something you will need. You will need trade plates now aswell.
Trade insurance can give you demonstration cover so long as accompanied.
Try bollington insurance brokers I have found their trade team helpful.
Say it's part time with your other occupation.
Selling a couple of cars from home is hardly crime of the century.
If you sell one or two and with the profits end up buying more then at that point get a small unit/yard/forecourt.
For what it's worth I think buying privately rather than auction is better to begin with. More time, auctions are quick and you need to know what you are buying.
What area of the country are you?
Trade insurance can give you demonstration cover so long as accompanied.
Try bollington insurance brokers I have found their trade team helpful.
Say it's part time with your other occupation.
Selling a couple of cars from home is hardly crime of the century.
If you sell one or two and with the profits end up buying more then at that point get a small unit/yard/forecourt.
For what it's worth I think buying privately rather than auction is better to begin with. More time, auctions are quick and you need to know what you are buying.
What area of the country are you?
Slightly OT, but still related.
Has the new tax rule reduced the amount of solo traders posing as private sellers? I'm assuming most of them brought cars from auction with some tax/test and quickly turned them round from home as "private seller".
Surely now if they have to tax the car themselves it adds another expense to their likely smallish returns? I was under the impression getting trade plates is pretty tough without proof of trading (and by providing this will leave a paper trail to hmrc etc that you're doing it for profit.
Has the new tax rule reduced the amount of solo traders posing as private sellers? I'm assuming most of them brought cars from auction with some tax/test and quickly turned them round from home as "private seller".
Surely now if they have to tax the car themselves it adds another expense to their likely smallish returns? I was under the impression getting trade plates is pretty tough without proof of trading (and by providing this will leave a paper trail to hmrc etc that you're doing it for profit.
Phateuk said:
Slightly OT, but still related.
Has the new tax rule reduced the amount of solo traders posing as private sellers? I'm assuming most of them brought cars from auction with some tax/test and quickly turned them round from home as "private seller".
Surely now if they have to tax the car themselves it adds another expense to their likely smallish returns? I was under the impression getting trade plates is pretty tough without proof of trading (and by providing this will leave a paper trail to hmrc etc that you're doing it for profit.
Hopefully.Has the new tax rule reduced the amount of solo traders posing as private sellers? I'm assuming most of them brought cars from auction with some tax/test and quickly turned them round from home as "private seller".
Surely now if they have to tax the car themselves it adds another expense to their likely smallish returns? I was under the impression getting trade plates is pretty tough without proof of trading (and by providing this will leave a paper trail to hmrc etc that you're doing it for profit.
Sadly, in my experience, applying for a first set of trade plates isn't actually as difficult as it used to be....
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