Can you Tax a car in trade.

[JA Trader 58]

Just picked up a lovely little SLK with every ever receipt for the car.

I have popped the car into trade as its only ever had 2 previous owners but now thinking i might run round in it till next year.

Do i have to put the car into my name or can i tax it on while its in trade never done this before.

[David Horgan 564]

Ive done it before , you wont get the tax back if you sell it though , so maybe monthly is best then just stop the direct debit when you sell it . 

Use the V5c2 and you can use the same number when you sell it . 

[JDM1983 28]

As a small home trader, I use one of my stock cars to avoid the cost of running my own. I just put the cars in trade on the V5, and use the regular details off the V5 to tax it. Never had a problem doing this 

Edited August 1, 2019 by JDM1983

[JA Trader 58]

24 minutes ago, David Horgan said:

Ive done it before , you wont get the tax back if you sell it though , so maybe monthly is best then just stop the direct debit when you sell it . 

Use the V5c2 and you can use the same number when you sell it . 

 

1 minute ago, JDM1983 said:

As I small home trader, I use one of my stock cars to avoid the cost of running my own. I just put the cars in trade on the V5, and use the registrar details off the V5 total it. Never had a problem doing this 

Thanks both i thought this would be the case. Now if the sun would like to come back that would be lovely

[It's me 615]

how can it be taxed

and in trade

its an oxymoron and sounds a recipe for disaster

i would never do it,i had the warning letter from dvla last year regarding this practise and to be honest i value my trade plates too much to lose them if i got done for a criminal tax prosecution

[Willoughby 15]

Not sure but I would have thought that taxing it on the V5C/2 i.e a new keeper will log it at the DVLA as having a new owner on the date the tax was issued...they'd then just be awaiting the new owners details to be sent/input .........so suspect its definitely bending the rules, bet if you rang the DVLA they'd tell you that you need to put it in your name.... 

Sort of thing that isn't a problem until you have a bump or get a tug from the plod......... 

 

   

[Mojo121 229]

Had mine taxed & in trade for the last 15 months 

[Casper 272]

If It doesn't effect the value much by putting in your personal or company name ie making a 1 owner car a two owner etc then sometimes i think it best too .

 I had a golf once and put in under the company name I owned  the guy tht bought it said it reassured him it was a good the fact that it had been owned by the company previous . As if it was good enough for my personal transport then it was for his .

tradex the polices I've had or seen normally mention on the policy certificate 

something like covers such and such for trade use extending to social domestic and pleasure use but it normally states vehicle owned by them or the company for personal use so unsure how it would work if its notified as in the trade although even though you still technically own it the boys in blue might not see it like that .and say it should in fact be registered to owner or company ie joe bloggs or bloggs car sales  and the trade part covers customer cars road testing test drives collecting cars etc    .

 I remember working for a guy years ago and wouldn't have liked to have seen his renewal

his said any employee friend relative or acquaintance   was cover for trade or personal use this was in the late 90s though i think its a lot different now  

Edited August 1, 2019 by Casper

[Blenheim Car Sales 111]

7 minutes ago, Casper said:

If It doesn't effect the value much by putting in your personal or company name ie making a 1 owner car a two owner etc then sometimes i think it best too 

 I had a golf once and put in under the company name I owned at the time the guy tht bought it said it reassured him it was a good the fact that it had been owned by the company previous . As if it was good enough for my personal transport then it was for his .

Some of us run LTD company and if the company owns it and you are running it then technically its a company car, The 5 year old MB that was 50k when new and you purchased for 12K is actually a very expensive company car

[Casper 272]

18 minutes ago, Blenheim Car Sales said:Some of us run LTD company and if the company owns it and you are running it then technically its a company car, The 5 year old MB that was 50k when new and you purchased for 12K is actually a very expensive company car

Thanks Blenheim

 Yes I understand that and was going to say I don't know the tax implications  as a ltd company and as you say its becomes a company car I've been a self employed sole trader and auction buyer for some car sales people unsure if JA is LTD or not 

I actually know a guy got a tug for using his own car registered to him  to go to a family wedding on his trade policy don't know what the outcome was just remember his business partner chatting about it at the time .

 

 

[Mojo121 229]

2 hours ago, Casper said:

I actually know a guy got a tug for using his own car registered to him  to go to a family wedding on his trade policy don't know what the outcome was just remember his business partner chatting about it at the time .

 

 

I'm confused. This is an issue because his insurance did not have sdp in it? Is that even possible? What law is he breaking exactly...?

[Casper 272]

17 minutes ago, Mojo121 said:

I'm confused. This is an issue because his insurance did not have sdp in it? Is that even possible? What law is he breaking exactly...?

I think that was the issue that it maybe didn't extend extend to Sdp unsure if he had and never heard the eventually outcome,in the end just remember them saying at the time like you though it did confuse me at the time .maybe he hadn't placed it on mid or something your guess is as good mine .

I think you can get insurance that's motor trade only road risk etc minnus sdp.someone correct me if I'm wrong ?

ive did it before to taxed it whilst in the trade used to do it regular back in the disc days if I was using something for 8 weeks or so 

Edited August 1, 2019 by Casper

[Grantlfc81 88]

I’ve done this on loads of cars. I don’t understand why it would be a problem. 

Its taxed, it’s insured, it has mot. And most of the time it has oil in the engine

[Casper 272]

I remember seeing a cop tv show episode thing think it was road wars from memory . although the car had tax mot and insurance they stopped the driver because it was registered in the trade and didn't show a registered keeper . Think they sent him on his way with a warning from memory 

as you say Grant I don't see the problem myself but guess there is grey areas everywhere .

Edited August 1, 2019 by Casper

[sparky 274]

14 hours ago, tradex said:

 

2/ Does the personal use of a stock car need to be declared for tax reasons as 'benefit in kind'.

I'm sure TV raised this before way back. It caught my attention so I checked with my accountant and, in my case yes TV was quite right. So, again, only your accountant can answer this for sure, but I feel sure we know what the answer will be.

That's definitely the case if the OP is Limited. Amazing how many 'Limited' dealers don't know this or maybe they just totally ignore it.

[JA Trader 58]

17 hours ago, tradex said:

This comes up very often, I always think of a couple of extra questions that need asking. Yes, I'm a boring straight edge but I find life much easier this way

1/ Does your trade insurance in fact cover you for personal usage, 'social and domestic' etc? Only the insurance co' can answer this and, if so you want this in writing. 

2/ Does the personal use of a stock car need to be declared for tax reasons as 'benefit in kind'.

I'm sure TV raised this before way back. It caught my attention so I checked with my accountant and, in my case yes TV was quite right. So, again, only your accountant can answer this for sure, but I feel sure we know what the answer will be.

#1 I am covered for personal use on it

#2 Good question i will ask him.

16 hours ago, Casper said:

Thanks Blenheim

 Yes I understand that and was going to say I don't know the tax implications  as a ltd company and as you say its becomes a company car I've been a self employed sole trader and auction buyer for some car sales people unsure if JA is LTD or not 

I actually know a guy got a tug for using his own car registered to him  to go to a family wedding on his trade policy don't know what the outcome was just remember his business partner chatting about it at the time .

 

 

Im not limited at the moment but expect i probably will be in 12 - 18 months time

11 hours ago, Grantlfc81 said:

I’ve done this on loads of cars. I don’t understand why it would be a problem. 

Its taxed, it’s insured, it has mot. And most of the time it has oil in the engine

*Some of the time

[Grantlfc81 88]

My trade insurance enables me to use for work use and personal

[It's me 615]

7 minutes ago, Grantlfc81 said:

My trade insurance enables me to use for work use and personal

me too

also goods in transit for business use (no pizza deliveries mind)

a  few years ago i looked into using i think it was road+++ trade insurance as my premium had nearly doubled,i nearly signed up till i went online to see the small print

no personal cars

no sdp

no goods carrying in relation to your business

it might have changed now or it might not have

[metcars 397]

12 hours ago, Casper said:

I remember seeing a cop tv show episode thing think it was road wars from memory . although the car had tax mot and insurance they stopped the driver because it was registered in the trade and didn't show a registered keeper . Think they sent him on his way with a warning from memory 

as you say Grant I don't see the problem myself but guess there is grey areas everywhere .

That's correct. You can be stopped for having 'no current keeper' and that is enough for them to go through your details and the car? The cops know that 'scumbags' and 'gangsters' tend to "forget" to register cars in their name for obvious reasons?

[Casper 272]

39 minutes ago, met said:

I agree with you Met and thank you for your input and reply as you know more about the law side of it than me .

What I meant with the grey area is I don't see  any real harm with a trader using one of his cars for a few days as long as it has tax insurance mot etc we have all have from time to time more so back in the day when you got the old tax disc with a few weeks remaining and half a tank of full 

The point I was making was for  people who may not be aware that they could still be stopped for the car having no registered keeper and the yellow slip filled in to say its in the trade like you have confirmed also although if its there car and everything is legal like the traffic officer on tv I guess most would be understanding 

I don't really like think its a bad thing as you say it stops or at least reduces the number of people getting speeding fines or worst cars used in a crime etc for there previous cars this off course only has to be a good thing and the traffic officer is only doing his job correctly by stopping a car thats owned it the trade 

I wonder  how it would work with the dd thing if the car is owned in the trade . 

Edited August 2, 2019 by Casper

[AAM90 22]

14 hours ago, Grantlfc81 said:

I’ve done this on loads of cars. I don’t understand why it would be a problem. 

Its taxed, it’s insured, it has mot.

This

[premi-motor 7]

Yes so long as its on the MID you can tax it off the green slip. When it sells, cancel the D/Debit since the new owner will tax it anyhow.

Worth mentioning that recently however, the DVLA Online web-site no longer accepts my main bank account for any new D/Debit payments...  

[Grantlfc81 88]

Also worth mentioning you can use the v5c2 green slip to tax the vehicle as many times as you want on that same slip

[TangoVictor32 90]

On 01/08/2019 at 11:01 PM, Grantlfc81 said:

I’ve done this on loads of cars. I don’t understand why it would be a problem. 

Its taxed, it’s insured, it has mot. And most of the time it has oil in the engine

Yes exactly.

No one has the time to look through why a car doesnt have a registered keeper. A registered keeper doesnt mean he's the owner...

Tax it. Mot it. And insure it.

Then drive it.

Traffic cops are focused on driving offences and road legal cars. They dont have time for tax or keepers. They're like the lowest offences of the lot.

Get pulled just mention the vehicle was just bought and / or its in the trade.

Road wars etc are 10+ years old when there was traffic cops. The whole policing priorities have since then changed.

 

[premi-motor 7]

That's interesting... I obviously keep my own cars on a rolling D/Debit. Just a few of the more interesting ones I sometimes use for a bit - adds to the variety 'n all LOL!