Auctions houses still charge CC Fees?

[Tom 164]

Are auctions houses still charging Credit card fees? Seeing as its illegal now?

[It's me 615]

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/664065/payment-surcharges-guidance.pdf

 

see business to business

[AutoJacob 34]

BCA don't charge?

[Mojo121 229]

Cashback. That's all I'm saying.

[Earunder 69]

Yes they charge, although never used it.  Should do really as my air-miles would go whooooooooooooop...

We would if I was selling to a trader or another business...

22 hours ago, s and b said:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/664065/payment-surcharges-guidance.pdf

 

see business to business

 

[Mark101 536]

I use them all the time - I get cashback and rewards on them.  Then I simply pay off in full at the end of each month and go again - free 4-6 weeks stock funding?

[Tom 164]

58 minutes ago, Mark101 said:

I use them all the time - I get cashback and rewards on them.  Then I simply pay off in full at the end of each month and go again - free 4-6 weeks stock funding?

How does that work "cashback" ? Not really dealt with credit cards.  

[Mark101 536]

2 minutes ago, Tom said:

How does that work "cashback" ? Not really dealt with credit cards.  

Go on a comparison site and look for best deals, filtering by what reward you want - cashback (think it 0.5%), airmiles, vouchers, Nectar etc.

Remember the card issuer charges a commission on each transaction to the processing agent (BCA, shop, fuel etc) hence why you see minimum spend £10 in a lot of places.  Out of their commission, they give you a little back.

The commission (when I had a card machine) I think was about 1.5-2% and Amex was more like 3.5%, hence why so few places accept it.

I use them because I like to keep the cash in the business - best case, I sell a car within the interest free month, worst case, I pay it off in full when its due.  Basically "free for a month" stock + a reward - got to be better than stock funding?

[Earunder 69]

43 minutes ago, Mark101 said:

Go on a comparison site and look for best deals, filtering by what reward you want - cashback (think it 0.5%), airmiles, vouchers, Nectar etc.

Remember the card issuer charges a commission on each transaction to the processing agent (BCA, shop, fuel etc) hence why you see minimum spend £10 in a lot of places.  Out of their commission, they give you a little back.

The commission (when I had a card machine) I think was about 1.5-2% and Amex was more like 3.5%, hence why so few places accept it.

I use them because I like to keep the cash in the business - best case, I sell a car within the interest free month, worst case, I pay it off in full when its due.  Basically "free for a month" stock + a reward - got to be better than stock funding?

That why I love CC's.  As long as you are sensible with money, I'm a tight so and so, and you pay it off early / on time the rewards are great.  Air Miles with BA, always get a Business Class seat upgrade for me and the family whenever we go to Vegas.  Free flights around Europe.  Obviously depends what you spend with them but still worth it if you put everything on them and can get to 20k per year.  Fuel, Shopping, anything and everything goes on ours.

 

[BHM 994]

On 29/03/2018 at 11:20 AM, Mark101 said:

I use them all the time - I get cashback and rewards on them.  Then I simply pay off in full at the end of each month and go again - free 4-6 weeks stock funding?

Tbf if you can’t afford your stock I tend to agree as I suspect them stocking loans can suck you in. All foreign to me thankfully.

[justina3 518]

Nothing wrong with old school thinking BHM but i also see the advantages of the modern world we live in as well.

 

[SC Derby 259]

7-8 years ago when we started we used to swipe in 10k from credit cards and use it for stock. Worked well at the time.

[Mark101 536]

50 minutes ago, BHM said:

Tbf if you can’t afford your stock I tend to agree as I suspect them stocking loans can suck you in. All foreign to me thankfully.

Just to be clear - I can afford stock but why not take advantage of "free stock funding?"  It leaves cash in the business to buy in privately advertised cars and in general gives me much greater flexibility.  Ultimately, the cards get paid at month end, either from a successful sale or from our reserves and I "build up" a nice little rewards incentive.

I did think about a stocking loan and set up a large scale operation - I'm too scared though.

[trade vet 702]

On 29/03/2018 at 1:09 PM, Earunder said:

That why I love CC's.  As long as you are sensible with money, I'm a tight so and so, and you pay it off early / on time the rewards are great.  Air Miles with BA, always get a Business Class seat upgrade for me and the family whenever we go to Vegas.  Free flights around Europe.  Obviously depends what you spend with them but still worth it if you put everything on them and can get to 20k per year.  Fuel, Shopping, anything and everything goes on ours.

 

My wife’s specialist subject is gathering reward points but by using personal CC’s.Like Earunder with our points we have saved thousands on First or Business class flights.However,if you are paying for stock with your business credit card and using the rewards personally,this could be dangerous.Now that a lot of traders could be doing this,what is to stop HMRC in the future from assessing these rewards as a personal benefit.For instance,a business class flight might normally cost £4000 but with reward points let’s say you pay only a grand.If you are 40% tax payer,could you not technically be taxed at  £1200 +interest and penalties on the £3000 benefit !....

[Mark101 536]

12 minutes ago, trade vet said:

My wife’s specialist subject is gathering reward points but by using personal CC’s.Like Earunder with our points we have saved thousands on First or Business class flights.However,if you are paying for stock with your business credit card and using the rewards personally,this could be dangerous.Now that a lot of traders could be doing this,what is to stop HMRC in the future from assessing these rewards as a personal benefit.For instance,a business class flight might normally cost £4000 but with reward points let’s say you pay only a grand.If you are 40% tax payer,could you not technically be taxed at  £1200 +interest and penalties on the £3000 benefit !....

Possible (a reason we stopped, or reworded a reward system at work for customer loyalty many years ago).

Possible but It is highly unlikely, HMRC has enough trouble gaining unpaid taxes from various companies, without checking all the incidentals.  Pay tax and VAT on time without errors and you are unlikely to ever get any investigation, let alone into these "perks."  In any case, I use personal CC, so even more work to route out what's business and what's personal.  Worst case, you have to pay tax on the benefit which is still less than the RRP

[metcars 397]

On 29/03/2018 at 1:09 PM, Earunder said:

That why I love CC's.  As long as you are sensible with money, I'm a tight so and so, and you pay it off early / on time the rewards are great.  Air Miles with BA, always get a Business Class seat upgrade for me and the family whenever we go to Vegas.  Free flights around Europe.  Obviously depends what you spend with them but still worth it if you put everything on them and can get to 20k per year.  Fuel, Shopping, anything and everything goes on ours.

 

Quite interesting, what sort of credit limit is on a card these days?

[Mark101 536]

2 minutes ago, met said:

Quite interesting, what sort of credit limit is on a card these days?

Depends, I don't have a company CC but I have about £70k limit on personal spread across about 7 cards ranging from £3,500 to £12,000 each.

I never turn credit away and always use some to keep me in check.

One of my closest mates is a multi-millionaire and has zero credit rating - he couldn't even get a store card at Debenhams - the reason, he has never had credit beyond his original mortgage.

Credit should only be used for growth/expansion not luxuries - just my opinion

[metcars 397]

1 minute ago, Mark101 said:

Depends, I don't have a company CC but I have about £70k limit on personal spread across about 7 cards ranging from £3,500 to £12,000 each.

I never turn credit away and always use some to keep me in check.

One of my closest mates is a multi-millionaire and has zero credit rating - he couldn't even get a store card at Debenhams - the reason, he has never had credit beyond his original mortgage.

Better than an arranged overdraft I suppose?

[Mark101 536]

Again, I don't have one because often you need to pay for the facility whether you utilise it or not - we as motor traders need flexibility to jump on something because a "good un" doesn't come around all that often.

We don't (well I don't) have time to wait for the bank to process a credit application, so the CC's work for me as established credit lines.

[metcars 397]

2 minutes ago, Mark101 said:

Again, I don't have one because often you need to pay for the facility whether you utilise it or not - we as motor traders need flexibility to jump on something because a "good un" doesn't come around all that often.

We don't (well I don't) have time to wait for the bank to process a credit application, so the CC's work for me as established credit lines.

Yes, you make a good case. Sounds interesting

Many years ago I had a trade colleague who got his accountant brother in law to set up an attractive very low interest overdraft facility for stocking. I've never heard of anyone being able to match it. He wouldn't do it for me!

Edited March 31, 2018 by met

[SC Derby 259]

Banks are so funny dealing with motor trade especially when you are starting out, I just took out personal loans to help get going.

[metcars 397]

Just now, SC Derby said:

Banks are so funny dealing with motor trade especially when you are starting out, I just took out personal loans to help get going.

You're not alone, most of us did. You can't really save up!

[SC Derby 259]

True, looking back it was a right scratch around, chucked in what I had (not a lot), borrowed that max the bank would let me have and a small loan from a family member (paid back within a year).

But it was a challenge and high risk I guess.

[Mark101 536]

3 minutes ago, SC Derby said:

True, looking back it was a right scratch around, chucked in what I had (not a lot), borrowed that max the bank would let me have and a small loan from a family member (paid back within a year).

But it was a challenge and high risk I guess.

And you're still here, so it worked - nice one - success favors the brave (or the insane)

 

[trade vet 702]

17 minutes ago, Mark101 said:

Possible (a reason we stopped, or reworded a reward system at work for customer loyalty many years ago).

Possible but It is highly unlikely, HMRC has enough trouble gaining unpaid taxes from various companies, without checking all the incidentals.  Pay tax and VAT on time without errors and you are unlikely to ever get any investigation, let alone into these "perks."  In any case, I use personal CC, so even more work to route out what's business and what's personal.  Worst case, you have to pay tax on the benefit which is still less than the RRP

Hi Mark

Pardon me,I am unsure how you can account for purchasing vat qualifying stock at auction for your business by using a personal Credit Card..As for HMRC,we had a random investigation which was basically a fishing expedition where they just try and make up assesssments  (discovery assessments) as they go along....You could be an ideal target for them !