Buying and selling vehicles privately - not sure about tax?

[CaitlinB 0]

Hello! I worked as a mechanic at a local garage/car shop for 6 years (left a few years ago to pursue engineering), however recently I've got into buying and reselling cars - I was wondering how tax will apply to me? Will all the profit I make become taxable income, even if it's put back into buying cars? I've searched around and looked at sites like this tax calculator but still not sure how it works. I'm intrigued if anyone here has done something similar and can share their experiences

Thanks!
Caitlin

[DBDlloyds 18]

Hi CaitlinB,

Yes the profit you make on each car goes towards your taxable income...

 

[MattR 177]

And watch out for the VAT threshold - remember its Turnover that counts not profit for VAT!

[justina3 518]

Yep the tax man will want his share of your profits which will be classed as self employed, depending on how many you sell the HMRC vat office will soon come into play just to spoil your day some more.

[Mark101 536]

37 minutes ago, CaitlinB said:

Will all the profit I make become taxable income, even if it's put back into buying cars?

Whether you invest in cars or leave your profit in the bank, cost of buying stock (reinvested from profits) is taxable.

[trade vet 698]

Most of us started from zero.You need to have an accountant,who will calculate your tax deductible allowances .You need to record every penny and every transaction.The bottom line is,get it wrong and if you have any assets,HMRC will think of a number and ‘take you to the cleaners’.....They are not big fans of ours

[have a word with the wife 299]

Buying and selling vehicles privately - not sure about tax?

is a confusing title, are you  selling cars in the course of a business? or privately ?

[BHM 994]

I think the original question needs directing at HMRC or an accountant.