selling cars and stuff

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jgra1
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selling cars and stuff

Post by jgra1 »

hi all...
I was made redundant from my only job last November,

I have spent a lot of time over the last few weeks looking into self employment.. car restoration, dismantling etc..

I have learned a lot, what a minefield and an unfair situation if you try to do it properly compared with others who 'sell from home - wife bought car, cant fit shopping in etc'

annoyingly, by sheer luck I have found a good premises, with correct permissions.. nearby, and big enough (about 1500 Sq feet) for only £600 a month!.. (nothing else around here even for more money - once you mention cars)

I am so stuck now..

If you become a business, you have to abide by consumer rights, obviously pay you VAT and sort IT and NI .. that is all ok, along with bookkeeping.. except the consumer rights stuff.. if I sold a 1970's Citroen, in theory a buyer could come back to me months afterwards, complaining e.g. the clutch did not last very long, car wasn't fit for purpose, and I would have to go to court or face collection of vehicle and a hefty refund, even after the owner has torn about in the car for 6 months..for an item that no one could prove was wrong at time of sale.. or have i got that wrong?

some people are idiots..

VAT, 20% of profit, not margin.. which adds a lot..

anyone tried going alone? vehicles are a hobby and a passion, have always been.. and I don't want to work in an office again really.. its a good opportunity to start a new chapter, or it's a minefield of stress and not enough hours - trying to pay rent and domestic rent every month, plus paying others to do (guaranteed) work for me.. for a car that maybe hard to sell because its old, rare etc etc..

any advice welcome

John

ps,
does anyone want to come in with me?
or give me jobs on their cars that they dont have time/space for?

Gibbo2286
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Re: selling cars and stuff

Post by Gibbo2286 »

I think you need to look further at the VAT rules for used cars, unless things have changed since I gave it all up VAT is only charged on the margin...........and only if you're registered which at the start you probably don't need to be.

Everything else is a big learning curve, my only advice is to keep receipts for every bit of spending, everything from tea breaks to bus fares, tools, overalls, the lot.

An accountant will advise on what's allowable against any tax.

If you don't keep good records be prepared for HMRC to come along and guestimate that you owe them x pounds and it will be down to you to prove you don't.

Most car buyers in my experience are genuine and if you treat them right you won't have the come backs you're worrying about.

Ps. Getting someone to come in with you is not a good idea, do it yourself and be your own boss.

jgra1
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Re: selling cars and stuff

Post by jgra1 »

thanks Gibbo, agree with all of that..

the secondhand margin scheme is (can be) applicable if I do have to pay VAT on cars.. you are right, the VAT threshold would be a fair way off at the beginning.. I just seem to read that if I bought a car for £1000 and sold it for £3000 I would pay £400 in VAT , even if I had spent £2000 getting it up to scratch.. maybe that's fair, after all i have added £2000 of VALUE to the car, and maybe a reason to keep costs and parts and time down

ps. yes re a partner, not sure why i suggested that! its not a good idea

Gibbo2286
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Re: selling cars and stuff

Post by Gibbo2286 »

Your example sale is correct, there can be times when the preparation work knocks a big hole in the profits if you're not careful but you can of course claim the VAT back on the parts used if you're registered.

jgra1
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Re: selling cars and stuff

Post by jgra1 »

ok, but if you were working on a car that couldn't have new parts supplied, ans your only option was an engine from Ebay etc for something obscure.. that is a big cost and VAT not claimed back on it? unless the seller was VAT registered, in which case the part(s) may cost more than a private seller

dont know, just thinking out loud..

Gibbo2286
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Re: selling cars and stuff

Post by Gibbo2286 »

I had a lady friend who dealt in property, I asked her what she thought of the 40% capital gains tax on her deals, she said "Don't be greedy, pay your taxes and hold your head high." She's now a multi millionaire.

jgra1
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Re: selling cars and stuff

Post by jgra1 »

;) fair enough, as said I want to be above board and pay the taxes! the stress of the post-sale period would keep me up at night though! I would hope that customers would be ok really, especially with odd not everyday stuff.. its a hope that's all..

quandary..

lexi
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Re: selling cars and stuff

Post by lexi »

If you have any tendency toward stress............don't go into business of any kind. Working on cars and selling them...........sounds like a nightmare John.
You would actually do better washing windows :-D

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white exec
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Re: selling cars and stuff

Post by white exec »

Or maybe work for someone else restoring cars? Far less risk and responsibility, and you'll be able to switch off at the end of each day.

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Michel
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Re: selling cars and stuff

Post by Michel »

lexi wrote:
25 Jul 2017, 17:32
You would actually do better washing windows :-D


Yes, you would. Window cleaner down here charges £30 (!) to clean a house our size - well, for those that are daft enough to pay that he does. 1/2 hours work...

doctle
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Re: selling cars and stuff

Post by doctle »

Michel wrote:
25 Jul 2017, 20:13
lexi wrote:
25 Jul 2017, 17:32
You would actually do better washing windows :-D


Yes, you would. Window cleaner down here charges £30 (!) to clean a house our size - well, for those that are daft enough to pay that he does. 1/2 hours work...

Did you know the old pink bottles of windolene are back in B&Q? After I clean the windows on our meagre cottage I have to polish them with windolene and I get nothing for doing it!

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CitroJim
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Re: selling cars and stuff

Post by CitroJim »

I've not seen Windowlene for years!!!

Good to know, it's great stuff :D

Gibbo2286
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Re: selling cars and stuff

Post by Gibbo2286 »

CitroJim wrote:
26 Jul 2017, 06:33
I've not seen Windowlene for years!!!

Good to know, it's great stuff :D


You just ain't been looking Jim :) I've never had any trouble finding it it's been on the shelves of most supermarkets forever.

doctle
Posts: 843
Joined: 16 Oct 2014, 12:17
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Re: selling cars and stuff

Post by doctle »

You can get the spray stuff here but the cream is hard to find. I've seen it for £15 a bottle on ebay but it's a bit lower priced now. My sister gets it in B&Q for £2.50. Cant beat that

doctle
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Joined: 16 Oct 2014, 12:17
x 182

Re: selling cars and stuff

Post by doctle »

jgra1 wrote:
30 Jun 2017, 16:21
hi all...
I was made redundant from my only job last November,

I have spent a lot of time over the last few weeks looking into self employment.. car restoration, dismantling etc..

I have learned a lot, what a minefield and an unfair situation if you try to do it properly compared with others who 'sell from home - wife bought car, cant fit shopping in etc'

annoyingly, by sheer luck I have found a good premises, with correct permissions.. nearby, and big enough (about 1500 Sq feet) for only £600 a month!.. (nothing else around here even for more money - once you mention cars)

I am so stuck now..

If you become a business, you have to abide by consumer rights, obviously pay you VAT and sort IT and NI .. that is all ok, along with bookkeeping.. except the consumer rights stuff.. if I sold a 1970's Citroen, in theory a buyer could come back to me months afterwards, complaining e.g. the clutch did not last very long, car wasn't fit for purpose, and I would have to go to court or face collection of vehicle and a hefty refund, even after the owner has torn about in the car for 6 months..for an item that no one could prove was wrong at time of sale.. or have i got that wrong?

some people are idiots..

VAT, 20% of profit, not margin.. which adds a lot..

anyone tried going alone? vehicles are a hobby and a passion, have always been.. and I don't want to work in an office again really.. its a good opportunity to start a new chapter, or it's a minefield of stress and not enough hours - trying to pay rent and domestic rent every month, plus paying others to do (guaranteed) work for me.. for a car that maybe hard to sell because its old, rare etc etc..

any advice welcome

John

ps,
does anyone want to come in with me?
or give me jobs on their cars that they dont have time/space for?

I think you're worrying unnecessarily about people returning old cars. Vintage vehicles are usually sold as seen and Caveat Emptor usually applies. On the financial stuff you can use something like Sage Books to manage everything on your PC. Chatting to an accountant for an hour or so would be money well spent. The rules are complex and often contradictory. Don't give up!