Re: selling cars/when are you a dealer Archived Message
Posted by Ian Baxter on November 22, 2009, 1:31 pm, in reply to "selling cars/when are you a dealer"
Hello Mike, From an income tax and vat view, your hobby would be considered as a part of your daily work and a distinction between the two gets cloudy (as they see it). I know this because I had a similar problem many years ago and believe me The Income Taxman is bad (but atleast I was able to negotiate my problem!!). The Vat man well he has more powers than Supermans big Sister. Both Tax And VAT have the powers to guesstimate over many years. 6 I think so even if they nobble you for £5,000 a year X by 6 and your staring at a £30,000 ticket. As you are already running a business its really not worth the hassle Anyway less of the doom and gloom If I was you I would simply set up your car sales as a seperate company or department and keep books for that. Ian.
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