|
I can see where bell boy's thoughts are heading. HMRC might consider you a trader too.
|
|
|
In todays market, is the definition of a trader someone who makes a loss on every transaction?
;)
Surely the biggest problem may come if a punter buys from you, and then attempts to invoke their 'rights', (of buying from a trader), when it all goes wrong!
p
|
|
If you are a privateer, kick up a fuss and fax them the V5 with your details/address on them. If you are a genuine petrolhead with a regular change of mind they'll accept your custom. If your not in the trade you don't want to be saddled with implied warranties from buyers.
|
|
If your add has trade on it it may well attract unwanted attention from customs and exercise as said. If you have made any profit on this then you do need to be paying tax on it.
|
Rattle, that's not entirely true.
Just because you make a profit selling a car doesn't mean that HMRC is entitled to a slice.
The Badges of Trade need to be applied.
|
|
It becomes a gray here deciding when it is for profit and when it is just a hobby though.
|
|
|
Just because you make a profit selling a car doesn't mean that HMRC is entitled to a slice.
INCORRECT.
From experience in another matter many years ago I was informed by our glorious leaders (TAX) that there is nothing on the statute that is exempt from CGT. It is just that HMRC or whatever deigns not to seek revenue from certain items (Main Residence etc.) and that if they wish they CAN levy CGT on ANY item that you make a profit from.
Just a thought.............MD
|
Taken directly from www.hmrc.gov.uk/cgt/possessions/
What kind of personal possessions don?t you pay Capital Gains Tax on?
Your private car is exempt from Capital Gains Tax.
You don't pay Capital Gains Tax on personal possessions that individually are worth £6,000 or less when you sell or dispose of them. Because of this, you wouldn't normally expect to pay Capital Gains Tax on, for example, ordinary household articles or equipment.
p
|
Good article Peter, thank you.
M
|
Sorry, presumed Peter, don't know why........tired.
M
|
So much nonsense posted above. As usual when this topic comes up.
1. CGT. Cars are exempt from CGT. End of.
2. Income tax. If you are making a profit through selling cars, then you need to be paying tax on it. Even if there is only one car a year that you buy as a wreck, restore and sell on, your hobby. Taxable to income tax - and national insurance. (There is a poster on here who is an accountant with a client who was pursued by HMRC for trading two cars a year.)
As for Autotrader. Why not use a different telephone number and email address? (Assuming, that is, that you are not actually a trader.)
Do you make a profit?
|
"The HMRC will look at the frequency of your trades, what you are selling, why you are selling it and what else you do.
tinyurl.com/kutp7t (Links to Telegraph article)
Edited by rtj70 on 01/06/2009 at 15:01
|
Look on the bright side...if HM R&C decide you are a trader but you are basically making a loss on each car then you can claim your losses against your tax bill...not to mention anything you spend on the cars.
I bet they'll soon decide you're no longer a trader!
|
Your biggest issue will relate to the fact that as a trader you have a liability of 6 month warranty for all pre-existing faults on the vehicle. (or something to that effect)
Carse
|
tinyurl.com/kutp7t (Links to Telegraph article)
Which includes this totally incorrect gem:
The spokesman from HMRC said: "We won't be bothering with a mother flogging her old cookbooks or reindeer jumpers.
"Even if someone sells a car online, it is of no interest to us. However, they might be liable for CGT."
There is no way, ever that a car can ever, ever, ever be subject to CGT. Journalists, don't you love them. (Whomever they claim to have said it.) And the reason for this is that everybody loses money on cars - and they don't want you offsetting the loss against your share portfolio gains. Thus any profits are tax free (some hope).
Dead right, though pd. They'll quickly decide you are not a trader.
|
|
|
|
