Marian TDM

Selling cars, making money, what's next?

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Hello everyone. 

I hope you all you had a nice weekend. The weather was not great but still, I managed to make 2k profit from 2 cars last week.

Just need a bit of advice, I am selling part time, I work full time and my profits from cars are decent I say. I feel like I need to step further and dream bigger. 

I spend all of my spare time searching, buying and selling cars. (that's evenings and weekends). 

What's next? Shall I find a place to store them? How long can I do it without being properly registered as sole trader?

When do I know that I am doing alright? I am making enough from cars to pay my bills but still I am afraid is not enough to quit my day job. 

Also I don't want to get in trouble with tax man. 

 

Thank you for advice. 

 

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if you pay your taxes on your profits like the rest of us have to you wont get in trouble with the tax man.

 

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You'll know when you know.  However- resist the temptation I would say.  Stay part time (paying your taxes of course) and enjoy it as a hobby.  Life in this game is MUCH more complicated and difficult than you can possibly imagine.  Be very sure before you take the leap.

 

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The simple answer is. You have to declare all income so that means from day 1.

No one can answer whether you will make enough to go full time or not other than yourself.

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22 minutes ago, justina3 said:

if you pay your taxes on your profits like the rest of us have to you wont get in trouble with the tax man.

 

This is what I want, what do I need to do? 

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3 minutes ago, Marian TDM said:

This is what I want, what do I need to do? 

Ring HMRC and explain your situation, they will guide you.

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 If you started trading since April 2018, you may be OK. You have a little time to file your 2018/19 return.

In your shoes, I’d register ASAP for self-assessment on line.

 

Self-employed income earned between April 2018 and April 2019

For untaxed income earned during the 2018-19 tax year, the online deadline for filing your Self Assessment tax return and paying your bill is midnight 31 January 2020.

Self Assessment deadlines in 2019

Before the next online tax return deadline comes around, there are several other Self Assessment dates in 2019 to bear in mind. It’s unlikely that all of them will be relevant to you, but understand which ones apply so that you don’t miss any important deadlines.

  • 31 July 2019 is the deadline for making your second ‘payment on account’ instalment to HMRC. This will only apply to you if you were self-employed during the tax year 2017-18 and you owed tax of over £1,000 when you submitted your tax return for this period. Take a look at our payment on account guide if you’re not sure.
  • 5 October 2019 is the deadline for telling HMRC that you’re self-employed so that they’re aware you need to complete a tax return next year. If you’re already registered as self-employed, there’s no need to do this again. Check out our guide to registering with HMRC for more information.
  • 31 October 2019 is the Self Assessment deadline for the tax year 2018-19 if you want to file a paper return rather than filing online. However, most businesses find it easier to file their tax return online – and under the government’s Making Tax Digital plans, eventually paper filing may not be an option.
  • 30 December 2019 is the deadline for filing your online tax return if you want the tax owed to be collected through PAYE via your tax code. This is only an option if you have some income that’s already taxed through PAYE (i.e. you’re employed as well as self-employed), and if your Self Assessment tax bill for 2018-19 is below £3,000. See our article on tax codes for more information.

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As as above all income must be declared to the lovely tax man not getting on to you but just when you said you want to do it properly a good accountant can help with this I'm a lucky I've a retired accountant book keeper does all mine  for me 

If it's possible start trading from  home for the first 6 months before commiting to a unit remember you will have a lot more bills with a unit etc 

good luck 

casper 

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Get an accountant. And if you sold 2 last week and made 2k, VAT wont be far off. And you will know when you're ready.

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7 hours ago, Marian TDM said:

Hello everyone. 

I hope you all you had a nice weekend. The weather was not great but still, I managed to make 2k profit from 2 cars last week.

Just need a bit of advice, I am selling part time, I work full time and my profits from cars are decent I say. I feel like I need to step further and dream bigger. 

I spend all of my spare time searching, buying and selling cars. (that's evenings and weekends). 

What's next? Shall I find a place to store them? How long can I do it without being properly registered as sole trader?

When do I know that I am doing alright? I am making enough from cars to pay my bills but still I am afraid is not enough to quit my day job. 

Also I don't want to get in trouble with tax man. 

 

Thank you for advice. 

 

Now isn't the best time. That's the nicest way of saying it. Wait till after Christmas before you do ever go full time.

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3 hours ago, NacMan said:

Now isn't the best time. That's the nicest way of saying it. Wait till after Christmas before you do ever go full time.

Very valid point though sometimes you can buy your stock the few weeks before and hold it till the new year . We used to do this previously in one my previous jobs

Edited by Casper

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11 hours ago, Casper said:

Very valid point though sometimes you can buy your stock the few weeks before and hold it till the new year . We used to do this previously in one my previous jobs

Nobody has any money after mid November, Xmas shopping begins then.

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24 minutes ago, NacMan said:

Nobody has any money after mid November, Xmas shopping begins then.

Very true , sometimes it keeps the prices off stock down .. 

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28 minutes ago, justina3 said:

December is often my busiest month of the year so not always the case. 

I guess u get that with people buying cars for wifes Christmas etc my old boss bought his wife a Porsche once for Christmas .. 

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Posted (edited)

Selling cars I s nice business, but is a little bit dangerous one. I’ve tried to start my own business, also related to cars, but it needed a lot of free time and profound knowledge about cars. I’ve never been interested in cars, so i left this idea. For me, more convenient became internet business. I’ve found a service that provides a list of ways to earn free money. Very good one, so my advice is to leave this business and use this service.

Edited by DanielStone

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9 hours ago, DanielStone said:

Life in this game is MUCH more complicated and difficult than you can possibly imagine.

:lol:That statement really stood out to me to re-reading this thread.

I’d happily have a guaranteed income and an extra £2k tax free a month right now... these jokers have it made.

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