Changing cars regularly

[cantstopbuyingcars]

Hi all, I understand that this thread has been discussed to death in a few other threads from 2011 and a few years back. I'm just looking for people's genuine opinions as I've seen mixed replies on this.

So, I understand fully that if you purchase a vehicle with the sole intention to make a profit, that is seen as a trade sale in the eyes of HMRC and you are therefore a trade seller. Whether it be the first car you've ever sold or the tenth car that month. I have no issues of understanding there.

My scenario is that I've bought 4 cars so far this year, all of which were purchased solely for enjoyment. I am constantly looking at changing cars as I really do enjoy the experience of driving a different car. The question is, would it be suspicious to HMRC and if so, what can I do to avoid that? Do maintenance costs and the fact I taxed and insured the vehicles help my case?

Before anyone says it, it is not an option for me to consider declaring myself a trade seller as I simply am not. The cars I buy are cars I'm interested in driving even if I do sell them quickly and I have no idea if they will make me a profit or not. Some of them have lost me £1k+ and on top of this I often buy old cars which would further create issues for me if a buyer is unhappy.

Any advice here? Is it best to try to slow down buying/selling? Surely an enthusiast on here must be buying cars more often than me? I'm pretty sure lots of the YouTube car guys have owned over 30 cars by the age of 30. To put it into perspective, I've already bought 4 cars so far this year. Is it very unusual behaviour to buy cars so often even as an enthusiast?

Many thanks!

[Krikkit]

If the cars are registered in your name, taxed insured etc, and you lose money as well, just crack on and don't worry imho.

[cantstopbuyingcars]

Krikkit said:

If the cars are registered in your name, taxed insured etc, and you lose money as well, just crack on and don't worry imho.

Thanks a lot! Useful to have a second opinion

[av185]

Proving you are buying cars with the sole intention to make a profit is very difficult.

Numbers are broadly irrelevant until you are actively trading.

You presumably register them in your own name and don't have a traders policy.

You are clearly a car enthusiast and not a trader and the Revenue won't be interested in the slightest even if you turn a profit.

[cantstopbuyingcars]

av185 said:

Proving you are buying cars with the sole intention to make a profit is very difficult.

Numbers are broadly irrelevant until you are actively trading.

You presumably register them in your own name and don't have a traders policy.

You are clearly a car enthusiast and not a trader and the Revenue won't be interested in the slightest even if you turn a profit.

That's a helpful answer. Yes all the cars are registered in my name, taxed and insured on a standard car insurance policy. It would be clear I was an enthusiast because I definitely don't even come close to making an overall profit when insurance, maintenance, and the price I sell it on for is included. But on certain specific occasions I have sold on a car for more than I paid for it, even including maintenance. Some of the cars I don't end up keeping for more than 3 months when I see something else I need to make space for. I guess I'm just concerned about forming patterns as that might be what they look out for and I want to know if there's a way to prove I'm not a trader. Also I end up repairing most of the cars I own in some way or another, be it a small repair or a large one.

[Krikkit]

I definitely wouldn't worry then - if they looked at your bank statements, would they find a profit from buying/selling including maintenance etc at the end of it all? I doubt it.

That's even on the most impossibly remote chance someone managed to convince them you were a trader, which I very much doubt.

[robsco]

You’ll be fine, enjoy yourself. The closest I ever got to an accusation of being a trader was PH themselves, when they took it upon themselves to ban me from using the classifieds until I proved in each case my name was on the V5. Morons.