Those of you who buy and sell cars...
Discussion
Night Runner said:
PaulGT3 said:
I think anything more than 6 vehicles a year and they advise a traders policy which can be had cheaply depending on age.
I vaguely remember 6+ cars a year meaning you are a trader, I presume this also has tax implications... Night Runner said:
PaulGT3 said:
I think anything more than 6 vehicles a year and they advise a traders policy which can be had cheaply depending on age.
I vaguely remember 6+ cars a year meaning you are a trader, I presume this also has tax implications... Also what would you do with insurance then?
There is no magical number where by you become a trader, if you sell a car for profit you are trading. In practice they may take issue with 10 or so cars, 6 is probably low enough to not attract attention.
Insurance wise for six cars you could go for a trader's policy, though I believe you're only then covered for use in the motor trade, you can drive it to aid the sale but not for trips to asda.
Insurance wise for six cars you could go for a trader's policy, though I believe you're only then covered for use in the motor trade, you can drive it to aid the sale but not for trips to asda.
You can take out a trade policy as a part time home trader, this will give you the same sort of cover as a normal policy i.e social domestic and pleasure, with the option to include commuting and business use as well as insuring any cars that you own and arent selling. . . . all at a price obviously, it will come with a few negative points, for example if your involved in a none fault accident, you wont get a hire car.
It will also mean that in the eyes of HMRC you are a trader and will need to jump through all the normal paperwork and taxation hoops, including paying tax on any profits
It's also worth noting that normal no claims won't apply to a trade policy, although some brokers may offer a discount.
It will also mean that in the eyes of HMRC you are a trader and will need to jump through all the normal paperwork and taxation hoops, including paying tax on any profits
It's also worth noting that normal no claims won't apply to a trade policy, although some brokers may offer a discount.
davepoth said:
If you just like having lots of different cars, no problem. If you are buying with specific intent to sell at a profit, it needs to be declared.
So if i was to just swap cars without any profit I wouldnt need to declare anything. What would I do about insurance though? If i wanted to be able to drive around as I please?
TVR Moneypit said:
LeeThr said:
What would I do about insurance though? If i wanted to be able to drive around as I please?
Phone Trade-Ex and take out a traders policy. Just don't forget to inform them ever time you buy / sell / swap a motor.TVR Moneypit said:
LeeThr said:
TVR Moneypit said:
LeeThr said:
What would I do about insurance though? If i wanted to be able to drive around as I please?
Phone Trade-Ex and take out a traders policy. Just don't forget to inform them ever time you buy / sell / swap a motor.TVR Moneypit said:
CampDavid said:
There is no magical number where by you become a trader, if you sell a car for profit you are trading. In practice they may take issue with 10 or so cars, 6 is probably low enough to not attract attention.
Insurance wise for six cars you could go for a trader's policy, though I believe you're only then covered for use in the motor trade, you can drive it to aid the sale but not for trips to asda.
It's been a few years since I last had a traders policy, but when I did, (Trade-Ex), any vehicle I owned was covered for SD&P / to and from a place of work, as well as the usual test drives etc.Insurance wise for six cars you could go for a trader's policy, though I believe you're only then covered for use in the motor trade, you can drive it to aid the sale but not for trips to asda.
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