Trading cars and HMRC

I am self employed (bringing manufacturers and buyers together in any industry internationally) but also buying and selling cars sometimes when I have time.

When I buy a car I put my company's name on the logbook.I phoned the DVLA and explained the situation and they said that yes, you can put your company name on and it doesnt matter if you are a motor trader or otherwise.

Therefore I bought three cars in the past to resell them. I have sold them now.

My question is: does the DVLA pass the information to HMRC to say 'this company has bought some cars and sold them' or stuff like that? I mean can it cause any problem to me in the future?

I'm not buying and selling cars all the time. Just when I haven't got any clients then I do it to get some pocket money. The cars were worth under £1000.

Asked on 18 April 2011 by sarf

Answered by Honest John

Not normally, no. But if your business turnover reaches the VAT threshold you need to be registered for VAT and you need to keep full car trading VAT books (13 columns).

Tags: dvla selling legal issues

Similar questions

How do I go about selling the car of a friend who has passed away?

A family friend has died and has no living relative in this country. I will sell her car and send the proceeds to her daughter in Canada. How does this affect signing the log book since the owner is deceased?

At what point does the car I've sold transfer to the new owner?

I've just sold my car to a buyer in South London but I'm uncertain as to when my liabilities will transfer to the new keeper. I prepared a handwritten receipt, which both buyer and seller signed at the...

Thanks to the DVLA for its help with a registration I wanted to place on retention.

Selling my car and transferring the registration to retention, prior to an operational tour to Afghanistan, I was initially dismayed to read the overly stifling conditions pertaining to the DVLA's Retention...