Selling a number of vans
Discussion
I know there are multiple "am I a dealer?" threads on here but wanted to ask a fairly specific question.
A good friend (yes really, I'm part of the conversation but I'm not the friend!) runs a company which has a large fleet of vehicles, from Caddy-sized vans up to road trains. He currently has half a dozen vehicles which are end of life as far as he & his business are concerned but which still have a value. I'm talking about things like Sprinters with 200/300k miles on them.
He has asked me if I'm interested in disposing of them for him, and he'll pay me for doing so. I'm officially retired but I do odd jobs for him (a bit of fabrication, a bit of driving, etc) just for interest and beer money. My question is, whether I do that under my own steam or under the banner of his business, does that automatically make me (or his business) a "dealer" in respect of the law and the rules around such a status? It won't be for profit as such, he bought all of these brand new and obviously they're all worth much less now, it's just that they need disposing of as he will replace them with other new vehicles. Dealers are not going to want them for PX at these mileages but they'll still fetch a few quid. Alternatively I guess we could throw them into an auction somewhere?
What's the best way forward whilst not falling foul of anything?
A good friend (yes really, I'm part of the conversation but I'm not the friend!) runs a company which has a large fleet of vehicles, from Caddy-sized vans up to road trains. He currently has half a dozen vehicles which are end of life as far as he & his business are concerned but which still have a value. I'm talking about things like Sprinters with 200/300k miles on them.
He has asked me if I'm interested in disposing of them for him, and he'll pay me for doing so. I'm officially retired but I do odd jobs for him (a bit of fabrication, a bit of driving, etc) just for interest and beer money. My question is, whether I do that under my own steam or under the banner of his business, does that automatically make me (or his business) a "dealer" in respect of the law and the rules around such a status? It won't be for profit as such, he bought all of these brand new and obviously they're all worth much less now, it's just that they need disposing of as he will replace them with other new vehicles. Dealers are not going to want them for PX at these mileages but they'll still fetch a few quid. Alternatively I guess we could throw them into an auction somewhere?
What's the best way forward whilst not falling foul of anything?
0ddball said:
You are taking ownership/possession of the vehicles to sell them and you are gaining financially from it. I'd say that makes you a dealer.
No, I wouldn't be taking possession (literally or figuratively), I'd be representing his business for the sales albeit on a self employed basis. I already keep sole trader records and pay tax for the other work I do for him.Thanks for the other responses above, those make sense, and the BCA option sounds good.
Cold said:
I'll definitely look at that, thanks.
This is just a standard fleet disposal process for the business there's no need for you to even be involved as a seller. The likes of BCA and Mannheim offer fleet disposals and remarketing for SMEs and larger businesses. Once the vehicles are no longer being used for business purposes HMRC consider them disposed and that will need to be accounted for in the company account (assuming Ltd co). If the guy is a sole trader there will be an impact on income tax.
av185 said:
Sell them through BCA fleet they will make strong money even with the mileage especially as 1 owner from new.
If you merely arrange the sale for your friend and take a fee of him that doesn't make you a trader.
This all day long. Doesn't have to be BCA, use the most convenient to you. I run a fleet of vehicles and wouldn't entertain selling directly to the end user at disposal time.If you merely arrange the sale for your friend and take a fee of him that doesn't make you a trader.
I pay a flat fee of £125 per vehicle plus vat. Btw do look into the vat implications if the selling entity is vat registered.
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