car dealer

[benny 61]

Hi all
A friend at work bought a slightly damaged car, repaired it and then sold it on. Since then he's done another 2. He asked me today does he have to report this to the tax office? How many cars does he need to repair to become a car dealer? TBH i wasn't sure so i thought i would pose the question to you more knowledgeable people

[Chris_w666]

Did he buy them with the intention of selling them on for a profit?

If yes then AFAIK he would be seen as a trader.

[benny 61]

Yeah to be fair he bought them with the intention of selling them.

[daemon]

benny 61 said:

Yeah to be fair he bought them with the intention of selling them.

After the first one. He needs to contact the inland revenue and register ASAP.

Dont forget all trading details are logged on autotrader, pistonheads, ebay motors, etc, so these records can be pulled at any point down the line.

If hes racking up any sort of sales at all he may well have to register for VAT, as he will break the threshhold.

He will also need to have motor trade insurance, and offer a warranty to his customers.

Out of curiosity, is he telling the buyers its damaged / repaired?

Edited by daemon on Monday 19th April 17:57

[benny 61]

daemon said:

benny 61 said:

Yeah to be fair he bought them with the intention of selling them.

After the first one. He needs to contact the inland revenue and register ASAP.

Dont forget all trading details are logged on autotrader, pistonheads, ebay motors, etc, so these records can be pulled at any point down the line.

If hes racking up any sort of sales at all he may well have to register for VAT, as he will break the threshhold.

He will also need to have motor trade insurance, and offer a warranty to his customers.

Thanks for the info pal, i think his intentions were to do about one a month but i think this info will stop him in his tracks