Motorbike hobby side business?
Discussion
Apologies for what I imagine is a common thread, but search is a bit wappy on PH.
In (hopefully) brief:
I like motorbikes. Especially fixing up projects. Once I get my shed built I fancy the idea of always having a bike on the go to restore/customise/etc alongside my long-termers. Then flog it to buy the next one.
I'm not looking to generate an "income" from it, just at best a hobby that pays for itself/I don't lose too much money on. I understand that if I, say, buy a bike for £3k, sell for £4.5k and then buy a £4.5k bike to do up, do I owe any tax on that £1500?
By the time I'd factored in costs, my time, tools, etc I'd probably be making a loss in reality, but like I say, it's a hobby. I just want to make sure I'm not going to be in trouble with the taxman if I bought and sold 3-4 bikes a year. I know some say if you buy one vehicle with the intention of making a profit then it's a business.
In (hopefully) brief:
I like motorbikes. Especially fixing up projects. Once I get my shed built I fancy the idea of always having a bike on the go to restore/customise/etc alongside my long-termers. Then flog it to buy the next one.
I'm not looking to generate an "income" from it, just at best a hobby that pays for itself/I don't lose too much money on. I understand that if I, say, buy a bike for £3k, sell for £4.5k and then buy a £4.5k bike to do up, do I owe any tax on that £1500?
By the time I'd factored in costs, my time, tools, etc I'd probably be making a loss in reality, but like I say, it's a hobby. I just want to make sure I'm not going to be in trouble with the taxman if I bought and sold 3-4 bikes a year. I know some say if you buy one vehicle with the intention of making a profit then it's a business.
Somewhat similarly, a mate of mine has a 'hobby business' buying tat from boot sales and antique fairs, and flogging on eBay. Makes a couple of grand after tax a year to pay for his holidays. Puts the profits through a self assessment form.
I suspect the bigger issue will be some punter claiming warranty work off you as you are a trader not a private seller.
I suspect the bigger issue will be some punter claiming warranty work off you as you are a trader not a private seller.
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