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Cars in a year...

1K views 11 replies 9 participants last post by  Piston Popper 
#1 ·
Does anyone know how many cars you can own and sell in a year before someone at the DVLA or something decides you're a dealer?
 
#4 ·
HMRC scour every paper ad and all other cars for sale listings and log the phone numbers.:shake:
 
#8 ·
The thing is that I'm not trying to make any money at this or anything, this isn't what it's about, a friend and I were talking about trying to own 12 different cars in a year. What brought it about was we were talking about cars we loved as kids, but couldn't afford at the time, but now fall into the sub £500 category, stuff like Fronteras, Twingos, Kas, and the like, I know it's an odd list, but hey, each to their own... So we thought, one a month, work through the cheap list, and check them all off!

Anyhoo, if I do this, and I've already got my first one, a Vauxhall Frontera sport, the best thing I can do is keep all the receipts etc for when the taxman comes knocking?
 
#10 ·
I'd heard it was 5 to be honest but can't really back that up. Even if selling only one for profit HMRC would expect to see the "earnings" in your tax return, so, basically keep every receipt for buying the cars, for any parts needed, and do a bill of sale when you flog them, that way the tax man can fuck off as there's no way you'll make a profit. The thing to watch out for is your local council as they may look for you to have a traders licence as you intend to do more than the 5 or so allowed in a year. It's a harmless bit of fun which you have a full explanation for, so I wouldn't worry, I'd go right ahead and do it.............but keep the receipts:tup:
 
#11 ·
Piston Popper - This might be an interesting read, although it is a few years old and may not be 100% up to date.

As it has a few car trading examples at the beginning.

http://www1.lexisnexis.co.uk/taxtutor/public/business/2a_business_tax/2a10-01(F).pdf

It seems that if your motivation is simply to drive cars you loved as a kid, that is not trading.

I am certainly not a tax expert, but I'd suggest that if you had a "social media" record of your "experiment" you might have a better case.

E.g. A "Showroom" thread with photos of you & the cars, reviews of what you expected vs. reality, etc.

Hope that helps, Paul. :)
 
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