Do you need a licence to trade cars form home?

[S14]

Someone asked me that if you trade cars from home, do you need a licence from the council? I wasn’t sure, and everyone I talk to has a different idea.

Does anyone on here know for sure or have they even done it themselves?

[daemon]

[redacted]

[Evil.soup]

If you are selling a number of cars for profit from your premises i believe you have to declare it as a second income and pay tax on it, at least that was my understanding?? I may be wrong?

[Shotgun Rider]

Evil.soup said:

If you are selling a number of cars for profit from your premises i believe you have to declare it as a second income and pay tax on it, at least that was my understanding?? I may be wrong?

If you buy and sell just one car for a profit you have to declare it as extra income. Though I dont know if you have to be licensed to deal with cars.

[S14]

I would of course declare all profits earnt, the Inland Revenue have been around a lot longer than me and they aren’t stupid!

I don’t intend to have any more than 2 cars at any one time, and my driveway is large enough to cope with this and I can also put one in the garage if needed.

[Evil.soup]

Shotgun Rider said:

Evil.soup said:

If you are selling a number of cars for profit from your premises i believe you have to declare it as a second income and pay tax on it, at least that was my understanding?? I may be wrong?

If you buy and sell just one car for a profit you have to declare it as extra income. Though I dont know if you have to be licensed to deal with cars.

I would imagine though that you would still qualify for the first X pounds tax free as with any second income.

[cirks]

local bye-laws may prevent the business being run from home as might any leasehold agreements (obviously this irrelevant if you own the freehold!). Easiest thing to do is phone the Council. Better than us guessing for your area

[Risotto]

[redacted]

[S14]

Spoke the local council and as I own the property and I have a driveway including a garage (not parking cars all over the road) they are fine with a couple of cars. Basically too many cars, too many complaints or too much mess and you've a problem. Basically don't take the pi** and respect those around you. Mostly common sense one thinks!

[grumpyscot]

Our council says that if you buy / sell cars as a business, then you need "change of use" planning permission and will have to pay business rates on the part(s) of the property you use for conducting the business - i.e. your driveway. They expressly prohibit using the public highway

[S14]

grumpyscot said:

Our council says that if you buy / sell cars as a business, then you need "change of use" planning permission and will have to pay business rates on the part(s) of the property you use for conducting the business - i.e. your driveway. They expressly prohibit using the public highway

Wow, that's strict - are you in London or within the M25? Or any city centre?

I am on the South Coast and they seem quite relaxed about the whole thing, but I guess alot of it goes on their previous experiences. I didn't expect such a positive response to be honest.

[Ari]

Evil.soup said:

I would imagine though that you would still qualify for the first X pounds tax free as with any second income.

Eh? You can earn some second income tax free? Genuine question, I didn't realise that was the case. Are you sure?

[Evil.soup]

Ari said:

Evil.soup said:

I would imagine though that you would still qualify for the first X pounds tax free as with any second income.

Eh? You can earn some second income tax free? Genuine question, I didn't realise that was the case. Are you sure?

Pretty sure you can but i may be wrong on that one. Im sure someone will correct me if i am wrong??

[Ari]

I'd be absolutely amazed if it were the case, but happy to be corrected!

[DickSkruttock]

No way on a 2nd income!

[Ari]

Thought not. Dammit!

[Evil.soup]

Oh well, i need to update that one in the back of my mind then........shame!

[Slade Alive]

Not a licence. It's a requirement to be registered with Trading Standards to sell used cars as a business, no matter how small or where from. You are required in law to keep a stock book or record of all vehicles bought and sold.

[Rovinghawk]

Ari said:

Eh? You can earn some second income tax free? Genuine question, I didn't realise that was the case. Are you sure?

Capital gains tax allowance is about 10k per annum before you pay tax.

RH