When is a private seller a trader?
Discussion
I'm sure this has been covered before, so apologies in advance but at what point does someone who has sold a number of cars become a trader?
No reason for the question other than curiosity based on a seller I have come across. In the last 4 months he has sold at least 7 cars. Most of which I have found he bought on ebay less than a month before he sold them (presumably he just waits for the V5 to come back) for substantially less then he is selling them for.
He is obviously welcome to make as much profit as he wants and fair play to him (and if I had seen some of the cars on ebay he has bought I would probably have considered doing the same), but is there a point at which questions should be asked about SOGA and Income Tax etc?
So are there guidelines around what makes a private seller a private seller? Would some one need to be selling multiple cars at once to be classed as a dealer? Do you have to be making x amount a year from the sales?
As I said this is solely out of curiosity, and thought where better to ask then here? I'm not going to post a link to the seller as I am sure there are hundreds of people do the same, and i'm not just going to pick on one.
Before any one asks its not me.
No reason for the question other than curiosity based on a seller I have come across. In the last 4 months he has sold at least 7 cars. Most of which I have found he bought on ebay less than a month before he sold them (presumably he just waits for the V5 to come back) for substantially less then he is selling them for.
He is obviously welcome to make as much profit as he wants and fair play to him (and if I had seen some of the cars on ebay he has bought I would probably have considered doing the same), but is there a point at which questions should be asked about SOGA and Income Tax etc?
So are there guidelines around what makes a private seller a private seller? Would some one need to be selling multiple cars at once to be classed as a dealer? Do you have to be making x amount a year from the sales?
As I said this is solely out of curiosity, and thought where better to ask then here? I'm not going to post a link to the seller as I am sure there are hundreds of people do the same, and i'm not just going to pick on one.
Before any one asks its not me.
Du1point8 said:
I would assume its as soon as the person is selling on for profit and its not a personal car they use?
If you bought a car, used it for 3 months, then sold for profit, bought another did the same again, then I suspect this would be almost non trading as its your personal transport, but its a very grey area.
The example you give is just a trader hoping not to be found out Im assuming they are not giving the same security as a normal trader like a warranty, etc?
Nope no warranty, and on a couple of occasions not mentioning faults in the original adverts (I know he may well have fixed them)If you bought a car, used it for 3 months, then sold for profit, bought another did the same again, then I suspect this would be almost non trading as its your personal transport, but its a very grey area.
The example you give is just a trader hoping not to be found out Im assuming they are not giving the same security as a normal trader like a warranty, etc?
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