Buying and selling privately
Discussion
LukeGiles said:
Your only a trader if your insurance company say your swapping cars too often. I sell cars and im not a trader. Traders are greedy. I am just an honest seller trying to make a living.
Sell on Gumtree and use Swapz website.
Assuming this is a serious post, you're a trader if HMRC say you are as far as tax is concerned. Nothing to do with the DVLA. If you match up to enough "badges of trade" then you're trading for tax purposes.Sell on Gumtree and use Swapz website.
If you are "trying to make a living" you are certainly trading and self employed / running a business.
confused_buyer said:
Assuming this is a serious post, you're a trader if HMRC say you are as far as tax is concerned. Nothing to do with the DVLA. If you match up to enough "badges of trade" then you're trading for tax purposes.
If you are "trying to make a living" you are certainly trading and self employed / running a business.
Oh dont get me wrong. I do pay my taxes. I'm just not a trader. I dont sell cars for tax purposes. I sell them to earn a living! If you are "trying to make a living" you are certainly trading and self employed / running a business.
Im registered with hmrc to pay my taxes however when i applied for trade plates with the dvla they wanted proof i was a trader. When i sent them proof it wasnt good enough becuase in their books i wasnt a trader!
LukeGiles said:
Your only a trader if your insurance company say your swapping cars too often. I sell cars and im not a trader. Traders are greedy. I am just an honest seller trying to make a living.
Sell on Gumtree and use Swapz website.
What was that about obvious troll being obvious?Sell on Gumtree and use Swapz website.
I assume a Mike Brewer TV Show may be making another victim here.
Let's say you want to make money selling £500 cars (and low volume, I assume by your post).
First off, Trade insurance would cost around £800+ per year, TPO (based on what it was a few years back, but could be wrong). Say £80 a month.
You'd have to be lucky/dodgy to buy a £200 car and make £300 profit, but we'll go with that anyway. Say you do one a week, 52 a year (which seems to be excessive based on your question, but still) - it can be difficult to find a sure-fire bargain each week as it's a competitive end of the market as you'll be competing with customers at an auction.
So, you're looking to make £300 clean profit a week in best-case scenario. Minus around £20 for insurance.
You'd then be looking at £280 a week 'wages' without tax, excluding advertising/auction costs, excluding when someone throws a brick at your windows for selling them a scrap car for £500 and you "don't do warranty as you're not a trader", excluding a week where you fail to sell said car or you buy a lemon.
You'll come to the realisation that you spent most days and nights covered in oil engine oil, sore and arthritic from faffing and bodging end-of-life cars, stressed and worn out from dealing with the £500 car stereotypical customers and wondering if/when the tax man is going to pull your pants down.
And then, you'll realise even in your wildest dreams you're not taking home even £15k a year.
That may seem harsh, but that is the reality.
Let's say you want to make money selling £500 cars (and low volume, I assume by your post).
First off, Trade insurance would cost around £800+ per year, TPO (based on what it was a few years back, but could be wrong). Say £80 a month.
You'd have to be lucky/dodgy to buy a £200 car and make £300 profit, but we'll go with that anyway. Say you do one a week, 52 a year (which seems to be excessive based on your question, but still) - it can be difficult to find a sure-fire bargain each week as it's a competitive end of the market as you'll be competing with customers at an auction.
So, you're looking to make £300 clean profit a week in best-case scenario. Minus around £20 for insurance.
You'd then be looking at £280 a week 'wages' without tax, excluding advertising/auction costs, excluding when someone throws a brick at your windows for selling them a scrap car for £500 and you "don't do warranty as you're not a trader", excluding a week where you fail to sell said car or you buy a lemon.
You'll come to the realisation that you spent most days and nights covered in oil engine oil, sore and arthritic from faffing and bodging end-of-life cars, stressed and worn out from dealing with the £500 car stereotypical customers and wondering if/when the tax man is going to pull your pants down.
And then, you'll realise even in your wildest dreams you're not taking home even £15k a year.
That may seem harsh, but that is the reality.
cj2013 said:
I assume a Mike Brewer TV Show may be making another victim here.
Let's say you want to make money selling £500 cars (and low volume, I assume by your post).
First off, Trade insurance would cost around £800+ per year, TPO (based on what it was a few years back, but could be wrong). Say £80 a month.
You'd have to be lucky/dodgy to buy a £200 car and make £300 profit, but we'll go with that anyway. Say you do one a week, 52 a year (which seems to be excessive based on your question, but still) - it can be difficult to find a sure-fire bargain each week as it's a competitive end of the market as you'll be competing with customers at an auction.
So, you're looking to make £300 clean profit a week in best-case scenario. Minus around £20 for insurance.
You'd then be looking at £280 a week 'wages' without tax, excluding advertising/auction costs, excluding when someone throws a brick at your windows for selling them a scrap car for £500 and you "don't do warranty as you're not a trader", excluding a week where you fail to sell said car or you buy a lemon.
You'll come to the realisation that you spent most days and nights covered in oil engine oil, sore and arthritic from faffing and bodging end-of-life cars, stressed and worn out from dealing with the £500 car stereotypical customers and wondering if/when the tax man is going to pull your pants down.
And then, you'll realise even in your wildest dreams you're not taking home even £15k a year.
That may seem harsh, but that is the reality.
If you know where to look and what to buy you can easily make a living. It will be a pain sometimes but one can work very well from this. If you come across a lemon break it for parts and sell them on facebook swap shops. You can easily get your money back breaking a car for parts. Now and again you might make a loss however if you cant make a drink on most cars you buy then this game isnt for you.Let's say you want to make money selling £500 cars (and low volume, I assume by your post).
First off, Trade insurance would cost around £800+ per year, TPO (based on what it was a few years back, but could be wrong). Say £80 a month.
You'd have to be lucky/dodgy to buy a £200 car and make £300 profit, but we'll go with that anyway. Say you do one a week, 52 a year (which seems to be excessive based on your question, but still) - it can be difficult to find a sure-fire bargain each week as it's a competitive end of the market as you'll be competing with customers at an auction.
So, you're looking to make £300 clean profit a week in best-case scenario. Minus around £20 for insurance.
You'd then be looking at £280 a week 'wages' without tax, excluding advertising/auction costs, excluding when someone throws a brick at your windows for selling them a scrap car for £500 and you "don't do warranty as you're not a trader", excluding a week where you fail to sell said car or you buy a lemon.
You'll come to the realisation that you spent most days and nights covered in oil engine oil, sore and arthritic from faffing and bodging end-of-life cars, stressed and worn out from dealing with the £500 car stereotypical customers and wondering if/when the tax man is going to pull your pants down.
And then, you'll realise even in your wildest dreams you're not taking home even £15k a year.
That may seem harsh, but that is the reality.
Adamround123 said:
Hi all, I want to start buying and selling cheap motors, say around the £500 mark,
Just want to know how many can I do a year as I'm not a trader/dealer?
And also how many do you buy and sell and have you ever had any bother from the tax man?
Cheers
Offically you can sell up to 12 cars per year before becoming a trader, or one per month. In years with 13 months this is increased to 13 per annum accordingly.Just want to know how many can I do a year as I'm not a trader/dealer?
And also how many do you buy and sell and have you ever had any bother from the tax man?
Cheers
If these are all Alfas you can double it to 24 as this is considered normal Alfa ownership, the caveat is that when sold the car has to be missing a major component ie engine or gearbox.
The tax rules state that cars with a CO2 emissions lower that 110 (or engine sizes smaller than 1.6l for pre 2001 registered cars) are not included in this calculation.
White Audis count double, unless sold in an unwashed state as they qualify for the grey market.
LukeGiles said:
confused_buyer said:
Assuming this is a serious post, you're a trader if HMRC say you are as far as tax is concerned. Nothing to do with the DVLA. If you match up to enough "badges of trade" then you're trading for tax purposes.
If you are "trying to make a living" you are certainly trading and self employed / running a business.
Oh dont get me wrong. I do pay my taxes. I'm just not a trader. I dont sell cars for tax purposes. I sell them to earn a living! If you are "trying to make a living" you are certainly trading and self employed / running a business.
Im registered with hmrc to pay my taxes however when i applied for trade plates with the dvla they wanted proof i was a trader. When i sent them proof it wasnt good enough becuase in their books i wasnt a trader!
TooMany2cvs said:
LukeGiles said:
Your only a trader if your insurance company say your swapping cars too often. I sell cars and im not a trader. Traders are greedy. I am just an honest seller trying to make a living.
Sell on Gumtree and use Swapz website.
What was that about obvious troll being obvious?Sell on Gumtree and use Swapz website.
LukeGiles said:
If you know where to look and what to buy you can easily make a living. It will be a pain sometimes but one can work very well from this. If you come across a lemon break it for parts and sell them on facebook swap shops. You can easily get your money back breaking a car for parts. Now and again you might make a loss however if you cant make a drink on most cars you buy then this game isnt for you.
Perhaps, but for low volume sales you may as well not bother and either become a car salesman (at which point you'd be doing similar with less of the negative) or get a full time job, as even £15k isn't really worth the hassle.Gassing Station | General Gassing | Top of Page | What's New | My Stuff