Car tax changes and effect on traders
Discussion
Hi all,
I was just familiarising myself on the car tax changes that come into effect in October. Cars can no longer be transferred with remaining tax left on them. Notwithstanding the massive swiz this is on the general public (i suspect that 90% of sold cars will now have the selling months tax paid twice, once by seller, once by buyer), but I'm unsure how this will work with part time traders such as myself... Let me explain.
I buy and sell cars part time as a bit of a hobby which allows me to drive cars I like for a little while then sell on. It's legit, I pay tax on income earned (which is not much), have trade insurance and have trade plates for when I don't have a car taxed.
Now, first thing I understand is that the refund to the seller for the remaining full months tax is paid when the name on V5 is changed.... Which means if I keep a car for a few months, the poor vendor will not get paid! The inevitable effect of this is that no one will want to sell a car to a trader unless it is already sorned.
Even getting over that, if I then manage to purchase a car and tax it, then when I sell later on, the refund goes to the person on the v5 :s.
This sounds like a total crock. The only inevitable conclusion that I can come to is that I'll have to register the car in my name, which then makes it private, which then doesn't benefit the buyer of my cars as purchases are no longer covered by SOGA...
Have I missed something or is this another crap piece of legislation?
Cheers
Pad
I was just familiarising myself on the car tax changes that come into effect in October. Cars can no longer be transferred with remaining tax left on them. Notwithstanding the massive swiz this is on the general public (i suspect that 90% of sold cars will now have the selling months tax paid twice, once by seller, once by buyer), but I'm unsure how this will work with part time traders such as myself... Let me explain.
I buy and sell cars part time as a bit of a hobby which allows me to drive cars I like for a little while then sell on. It's legit, I pay tax on income earned (which is not much), have trade insurance and have trade plates for when I don't have a car taxed.
Now, first thing I understand is that the refund to the seller for the remaining full months tax is paid when the name on V5 is changed.... Which means if I keep a car for a few months, the poor vendor will not get paid! The inevitable effect of this is that no one will want to sell a car to a trader unless it is already sorned.
Even getting over that, if I then manage to purchase a car and tax it, then when I sell later on, the refund goes to the person on the v5 :s.
This sounds like a total crock. The only inevitable conclusion that I can come to is that I'll have to register the car in my name, which then makes it private, which then doesn't benefit the buyer of my cars as purchases are no longer covered by SOGA...
Have I missed something or is this another crap piece of legislation?
Cheers
Pad
No, I always have the large part of v5, yellow bit gets sent off as its been sold to trade...DVLA then know I have the car and am at liberty to smoke around to my hearts content provided its taxed and insured, which it always is. Looks like I'll just have to register in my name I guess... Ho hum.
Cheers
Cheers
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