340BHP-WRX

iTrader: (6)

I've been buying and selling cars for some years now, keeping them for a few months before selling them on so technically not a trader but the time has come to make it legal and declare it properly.

I've been in full time employment for 17 years which has nothing to do with the motor trade so this will be something I will be doing on the side to start with.

I've been getting some good quotes for a trader's insurance policy so I'm not worried about that and I already have some contacts that I've previously bought cars from.

My big concern at the moment is whether I need planning permission to be doing this from home. I own my own house and have enough land for around 6-7 cars at one time although it'll probably only be 1 or 2 at a time.

I won't be advertising the cars outside my house or on the road, will be advertised online with viewing by appointment only.

Do I legally need to get planning permission for what I intend to do ?

Does anyone on here have any experience of trading from home that can offer any advice ?

Boro

iTrader: (1)

Not sure on that side of things. I'm interested in what kind of warranty you'll offer though?

Oldun

You need to check your deeds, there might be covenant that does not alow a business to be run from your house.
You also need to contact the local council for any other advice.

f1_fan

iTrader: (9)

Don't worry I am sure there will be some rule or set of rules that either stops you doing this or has so many fees, taxes etc. to pay and hoops to jump through that it makes it not worth your while. This is the UK after all where politicians talk of small businesses saving the economy, but create so much legislation and taxation it prevents you from earning an honest crust. All talk is what they are! I would just go on benefits instead mate. It'll be easier in the long run and it is the future

LSherratt

iTrader: (1)

F1 you're probably right. The fees or whatever is needed will be so high, it'll put people off doing this who want to make some honest extra money on the side of their main job. Personally if it was me, I would carry on as you are and not inform anyone. When you finally get told to stop what you're doing, then look into doing it officially.

ScoobyWon't

What are the benefits of making it legal and declaring it properly?

kevstar81

Do a LTD company. I payed £4.99 and all went through ok. then say your using your garage as a business from it. If your renting i know you can not do this as a lot of times its in the terms and conditions but if you own your property just check your paper work first.

340BHP-WRX

iTrader: (6)

Well I'm told that I have to offer 3 months warranty on all sales by law. I'm currently looking into offering private warranties with sales over a certain price but haven't looked into it that far at the moment.

340BHP-WRX

iTrader: (6)

Insurance is costing me a fortune when I swap cover onto a new car every month and also have to add a second car on as temporary cover.

Also, I don't want to get caught out selling cars for profit and not declaring the income etc.

Last year I bought and sold around 20 cars, technically not for profit but I've recently heard of someone I know being investigated for doing the same and possibly getting done for tax evasion !

Midlife......

iTrader: (2)

20 cars a year bought and sold......... you would be hard pressed to convince anybody that it's a hobby.

Shaun

David Lock

There was a similar thread some while back where some guy was planning to work on cars on an unmade road alongside his house and concerned about the neighbours.

20 cars a year is trading.

Sounds like you need to do some research on trader's liability aa it's quite onerous. Traders often "get away" with problems as customers do not know their rights or the trader bullies them.

Good luck. dl

urban

iTrader: (1)

Tail light warranty

340BHP-WRX

iTrader: (6)

20 cars a year would be seen as trading which is why I'm going down the route that I am now.

I've always been honest with my cars as much as possible, I'm not looking to sell on dodgy motors just for quick profit.