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When does a business need to be VAT registered?A business must register to pay VAT when the value of its taxable supplies exceeds the registration threshold (£82,000 per annum in 2015-16). Please note supplies = sales. Purchases do not come into it. Direct from HMRC So someone selling 40 cars a year at 2K a car would not need to be VAT registered. or combination of cars upto threshold. A dealer selling 30 cars per year at @ 2K and 3 cars @ 8K would require to be vat registered. We all hate paying VAT on repairs and costs then giving VAT Man 1/6th of profit. If someone trades from home, pays all taxes due, maintains vehicle and sell to a high standard I see no problem with them, as majority on here started that way. I did and proud of it. Problem is we have become a nation that must buy everything cheap. Thats why Lidle, Aldi and discount shops have been doing so well and customers expect it everywhere now. We even expect a great deal when we outsource a body repair or specialist engine repair none of us go for the highest price quote we go for reliability and ROI. Someone said earlier about trade only auctions I remember when Manheim did trade only auction weekly and had seperate auction days for Public or trade. Problem is like everything it comes down to cost. Why have all the staff required for a auction another day when you can fit it into the auction days you have. ROI again. However I do have a problem with side of road dealers no warranty and no inspection and sell quick for £200 profit whilst claiming unemployment and do not care if anyones child or family member gets killed in a unsafe car. 1 Guy round here change his trade name 3 times last year. BASICALLY DO IT RIGHT AND SLEEP AT NIGHT. TRADE ONLY FORUMS. THERE IS ONE ALREADY RUNNING. STARTED BY A RESPECTED INDEPENDANT DEALER. When breaking cars you must be registered with DVLA, COUNCIL and POLICE so why cant they run a register along those lines for car dealers, or say we must register with DVLA, Trading Standards & Police and get a registration number issued by those 3 Bodies, that we in turn have to place into our adverts. This would help when dealing with customers proving we are legally trading. That in turn should keep unscrupolous traders out. I have not set out to offend anyone and appologise if my thoughts have done so in any way. OOPS I think thats enough.

SK, I wasn't aiming my comments at anybody in particular and apologies if you thought I was. You sound one lucky person though and a very understanding employer. I suppose I only have experience of the guys doing it near me. Our local steelworks recently made a load redundant and 1/2 dozen of them "set up" in the motortrade, no experience of the trade, no real clue of customer care, SOGA, legal responsibilities but it made our job very hard for a short while because they were quite happy selling a car to make £200 - no VAT, no tax, no warranty etc, and once they had the customers money that's where their interest ended. And one local guy that buys anything he can retail for under £1000 and sells it via facebook, classified adds etc and again has no interest post sale. So my comments were made with those in mind - as I said I first started off as a home trader after 20+ years in the motortrade. When setting up I also contacted my local council who assured me no planning was needed, but 6 months after setting up the local parish council started to take more of an interest and sure enough there is some precedent set and the battle started.......its still going on now some years later, I don't need it anymore but just out of my own pure pig headedness I'm taking it all the way.

Yip, 100% correct and well pointed out, however remember Sales & turnover also include extended warranties and upsells and if you buy it at £2000 and sell it at £3000 then its the £3000 that goes towards the vat threshold ,so as I suggested it does't take long to get to the vat threshold especially if you are dabbling in £10k cars. But you are right " DO IT RIGHT AND SLEEP AT NIGHT" or as I always say "DO IT RIGHT OR NOT AT ALL" amen! But as SK Motors has now pointed out he his looking to go vat registered and trade from trade premises, so I'm sure you will join me in wishing him all the best in his future.

I used to visit this forum a fair bit but like others have become increasingly frustrated with the amount of very basic questions being asked which don't have a place on a "car dealer" forum. My mind boggles how part time dealer/traders do it along side a full time job? When do you find time to source stock, collect stock, prep stock, photo and advertise the stock, respond to enquiries, meet customers, deal with warranty/post sale issues, dispose of part exchanges, do the paperwork, do the banking, file your tax returns etc???? Also how do you stay under the VAT threshold? Couple of cars a month, the odd px a month, prep bills paid, advertising bills paid and you're at the threshold. I've nothing against professional home traders/dealers, it's how I started, gave up work and started full time, but I just don't understand how you can claim to be a bonified, professional trader/dealer while holding down another full time job? I struggled doing it full time and quickly opened up a indoor showroom, no car supermarket glass palace but I'm proud of it. You do need planning permission to retail cars from home, and as I found councils are very reluctant to grant it, you need public liability insurance, you need understanding neighbours etc So good luck if you're "getting away with it" and enjoy it while you can because eventually the planning department, vat man, tax man, annoyed neighbour, upset customer who'll be happy to drop you in it with them all will catch you out one day.

Well Worth Doing, Also don't forget you also get £1500 For taking a Apprentice on from the college, Helps pay there wages for a few months, Which is handy as there learning. I have done this myself with our garage Mot Station. Just be careful who you pick, do your homework and choose your own apprentice, don't let the college choose as you may be placed with a workshy student. Find someone who eager and keen and shows it, even if there not that experienced its best to find someone who is willing to learn and is eager over a lazy know it all.

Completely agree with you here. Small business, cashflow is important and I am more than happy for you to pay for the car and leave it with me for 2 weeks if you like or alternatively start using it right away and I will do the paperwork for you no problem and give you a quick call once the plate transfer has been done and you can switch your plates across anyway. I have not had one person who has ever objected to this or raised it as an issue when I have explained the reasoning behind it.

They are not paying for the car without having it though - they can have the car immediately if they wish, they are just choosing not to? Don't see why we should have to sit on a bit of sold stock for a couple of weeks with no payment just because the customer wants us to do the plate transfer for THEIR convenience!!

You may have needed planning permission from your local council but I can assure you that I consulted my local council before starting trading and I have it in writing from them that I do not require planning permission to trade in the way that I am. If I turned my driveway into a forecourt then obviously that would be a different situation ! I shouldn't have to explain my circumstances on here,but how do you know what my situation is personally ? I have an understanding employer who allows me to be self employed alongside being employed by him,he allows me to have cars delivered to his premises,he allows me to take time off during the day to go and collect cars,time out for someone to come and view a car etc. He's fully aware that I'm considering leaving and doing this full time, I've even discussed renting premises from him ! I have no need to enjoy it while I'm "getting away with it", I run my accounts accurately, I pay my tax and NI (through my employment and self employment I might add) and I will become Vat registered if I think I will hit the threshold or definitely if I start doing it full time. The people who you lot should really be getting frustrated with are the ones selling 10 cars a month through Facebook for example who are claiming to be unemployed while making thousands per year and there's literally 100's of them doing that !