Re: Selling cars - When are you a dealer? # Archived Message
Posted by Ian Whitmore on November 23, 2009, 5:54 pm, in reply to "Selling cars - When are you a dealer? #"
I dont think the Vat isuue has been explained totally. If the difference between the buying & selling price is £1000 you pay the VAT within that, not on it. So the Vat would be £130.43. NOT £150. So in Jan 2010 that rises to £148.93. Do not try & set up 2 companies 1 for repair & 1 for sales the vat man sees that as a deliberate Vat avoidance & will get you for it. I sell about 10 cars a month ranging in price from £500 to £2k. Every one also has an aftermarket 3 month warranty on it. these can be bought for about £75. As a motor trader you have to be very carefull when selling cars, Trade descriptions, fit for purpose etc etc.
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