selling car to family

[Mistermuttley 19]

Hi all, my sons Corsa has started to have a nasty rattle on the top-end. As its old and miley I have decided to give him a car from stock.

Its a Kia Ceed worth around £3600 but I want to make no profit on it as its a gift.  It stands me around £3150 all in.

What would be the best way to sort the paperwork for this. It might be obvious but Im not sure how to play it?

Any suggestions appreciated.

[Stalker 180]

Are you a limited company? 

[Arfur Dealy 823]

If you are a company, invoice yourself / him the hammer price plus indemnity, you then won’t pay VAT. If you are self employed it doesn’t matter, it’s your money. If I’m wrong apologies upfront.....

[trade vet 704]

1 hour ago, Stalker said:

Are you a limited company? 

You are thinking ... ‘connected party transaction ‘.has to be at market value and disclosed in the annual accounts.

[tradegirl 112]

1 hour ago, Arfur Dealy said:

If you are a company, invoice yourself / him the hammer price plus indemnity, you then won’t pay VAT. If you are self employed it doesn’t matter, it’s your money. If I’m wrong apologies upfront.....

Simon, as I understand it don't they only take into account the hammer price? So if a car is £2900 hammer price plus 250 fees, and you sell it to family at 3150, they will charge VAT on the 250? (÷6=£41.6 VAT)

No?

[Nick M.K. 574]

Invoice your son for £3150, might be a good idea to ask him to pay that money in your business account. 

Tradegirl: this basic math should’ve been known to you from day one. The purchase price of a used car is auction hammer price plus indemnity / buyers fee. This is the full price. 

[Mistermuttley 19]

Thanks for all the replies. I'm not limited and I'm under the vat threshold as its a part time job for me. Doorstepper but all taxes duly done, I'll invoice him the full amount of £3150 and the wife can pay it into my account and I'll then just withdraw it from the business and pay her back. Got to keep the paper trail!

[Arfur Dealy 823]

You are self employed, your money is your money, it’s a personal purchase. Simply invoice yourself as advised. 

[MattR 177]

As above. Technically you could also sell it as a loss, as we all will have done at some stage, however that would raise an eyebrow at an inspection

[It's me 615]

A corsa to a Kia would not be my choice as your son sounds young? 

[MattR 177]

Sounds like he's getting the car for free - and a kia ceed will have aux in points etc which is all most of them are bothered about !

[Mistermuttley 19]

2 hours ago, boring dave said:

A corsa to a Kia would not be my choice as your son sounds young? 

I know but it was his choice, I had a kia a fiesta and a 207. after driving all 3 he preferred the kia. Thought he would pick the fiesta but i think he likes the idea of the Ceed as its low mileage,diesel and full service history. He is at uni studying to be a maths teacher ,so he has probably done the figures in his head!

12 minutes ago, MattR said:

Sounds like he's getting the car for free - and a kia ceed will have aux in points etc which is all most of them are bothered about !

Yes its completely free for him,jammy sod. Wish i got something like this at his age. Its got aux in and usb, but he likes spotify so has already mentioned a new stereo for it. Kids!

Edited December 29, 2018 by Mistermuttley
addition

[NOACROSS 414]

Our lad chose a Kia too (Rio). Loves it. As do his friends. Had it two years now and isn’t interested in changing it. 

So true about the Aux input though.Kids nowadays are a different breed to our day. Just trying to get him to have a beer is a challenge. Also seems more interested in saving money than spending it and has little interest in girls or cars. 

[Mistermuttley 19]

Just now, NOACROSS said:

Our lad chose a Kia too (Rio). Loves it. As do his friends. Had it two years now and isn’t interested in changing it. 

So true about the Aux input though.Kids nowadays are a different breed to our day. Just trying to get him to have a beer is a challenge. Also seems more interested in saving money than spending it and has little interest in girls or cars. 

My son likes his beer (student) and he did mention getting a new car with his student bursary as he will get 10k bursary in his last year. he asked my opinion on decent cars after he had mentioned he likes bmw 1 series and scirocco's. Steered him clear of those as it sounds like another corsa in the making. I told him a 3 door Ceed would be decent ,say 2014 low miles and warranty remaining for about 7k, thought he would like that.......he then comes back with what do you think of Golf Gte's, he was thinking of spending 18k on one. Like what seems a majority of kids he is very brand conscious which isnt like his parents. Because he is getting the Ceed for free now he has agreed to save the 10k for a house. To me though it seems amazing that kids these days are willing to get massive loans just for a flash car, my son included, luckily we have talked or more likely 'bought' him round!

10 minutes ago, MattR said:

Sounds like he's getting the car for free - and a kia ceed will have aux in points etc which is all most of them are bothered about !

Its got aux in and usb, but he likes spotify so has already mentioned a new stereo for it. Kids!

[metcars 397]

Thank god i thought i was the only one that has 'aux' issues!

39 minutes ago, NOACROSS said:

...........Also seems more interested in saving money than spending it and has little interest in girls or cars. 

Sounds like a guy that will save huge amounts of money!

[It's me 615]

no offence but now i read hes going to be a maths teacher the ceed will suit him to the ground

will he take up pipe smoking later i life i wonder?

i have visions of please sir now with dennis in the background and sharon being er sharon

[NOACROSS 414]

Another thing I have noticed, is that him and his friends all HAVE to have the (phone) sat Nav on- no matter how far the trip or how many times they’ve been there before. Weird. And he insists on using ‘Waze’ rather than Google Maps etc.  

[trade vet 704]

25 minutes ago, boring dave said:

no offence but now i read hes going to be a maths teacher the ceed will suit him to the ground

will he take up pipe smoking later i life i wonder?

i have visions of please sir now with dennis in the background and sharon being er sharon

He sounds like  a ‘good un’to me.Shortage of maths teachers,even in the North East I think they earn £50k and that goes a long way up here.

[Mistermuttley 19]

2 hours ago, boring dave said:

no offence but now i read hes going to be a maths teacher the ceed will suit him to the ground

will he take up pipe smoking later i life i wonder?

i have visions of please sir now with dennis in the background and sharon being er sharon

dont know about the pipe as his mom has given up smoking and that would be a bridge too far, but i might see if Kia do accessories for him like a tweed jacket with elbow pads.

[have a word with the wife 299]

24 minutes ago, Mistermuttley said:

dont know about the pipe as his mom has given up smoking and that would be a bridge too far, but i might see if Kia do accessories for him like a tweed jacket with elbow pads.

[CCC 31]

Buy assets, not liabilities I was taught. £10k for a house is far more sensible. National shortage of maths teachers so won’t be short of work though starting is closer to £30k before incentives. It’s not much fun though so train him up in cars to give him a choice if he wants to get out. I know plenty of teachers, few enjoy it nowadays, but then the idea of working for the government holds no appeal to me.

 

[metcars 397]

20 minutes ago, CCC said:

Buy assets, not liabilities I was taught. £10k for a house is far more sensible. National shortage of maths teachers so won’t be short of work though starting is closer to £30k before incentives. It’s not much fun though so train him up in cars to give him a choice if he wants to get out. I know plenty of teachers, few enjoy it nowadays, but then the idea of working for the government holds no appeal to me.

 

Somebody thought it was clever to slash the job to the bone and kill the pensions. Back when the recession started the Public sector workers were the first to have the finger of blame pointed at them from the daily fail readers. All the good teachers have left the job. Whoops!

But don't forget "we're all in it together"

[Stalker 180]

22 hours ago, trade vet said:

You are thinking ... ‘connected party transaction ‘.has to be at market value and disclosed in the annual accounts.

Yes indeed tv. Our accountant told us to make sure that all deals are done at the current market value! Both when selling and buying off the company. 

[Screenman 47]

Two of my three boys are qualified maths teachers, one has risen through the ranks to be head of a good sized school and gets paid very well, the other is a fireman.

A teaching job would certainly not be for me.

[Mistermuttley 19]

2 hours ago, Screenman said:

Two of my three boys are qualified maths teachers, one has risen through the ranks to be head of a good sized school and gets paid very well, the other is a fireman.

A teaching job would certainly not be for me.

Same here, he has shown me a video of him teaching in class and watching him control a class of about 30 kids 13-14 years old was very impressive. He is only 19 and i said to him well done its something I couldn't do myself. I think as a teacher you need to be pretty unflappable and calm when the little shits i mean angels give you grief! I can imagine me as a teacher with an empty classroom as all the kids are in detention! Its funny how certain jobs suit certain people. I just like getting my hands dirty and fixing stuff, more hands on than academic.