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I am not employed and would like to set up as a sole trader

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I am not employed and would like to set up as a sole trader ,selling classic cars from home. I intend selling classic cars imported from within the EU. Currently there is no VAT or import duty on classics cars that are being imported to the Uk from within the EU. The cars shall be sold for approximately 15,500 each total approximately five or six per tax year(Apri-April) with an estimated profit of £1,000 to 1200 per car. My question is the following.
1. If I sell more than five cars with a combined selling rice of over £82,000, do I register myself for VAT? These cars are VAt exempt in the first place. If I setup for VAT, do I charge VAT to the customer , even if these cars were VAT exempt?
2. I intend keeping each car for a couple of months driving them regularly and using them as my commute to work and then selling them. Surely, I do not need trade plate insurance for this? Or do I. The DVLA is linked to the HMRC and when you import a car form within the EU , you are asked on the Notice of Vehicle arrival(NUOVA) if the car is for commercial or personal use. This is a grey area as I intend using it for personal use for a couple of months before selling it.
3. As per the HMRC rules I shall not be making a profit of more than £8000 per year so I shall pay Class 2 NI but what how do I show profit in cash flow when outgoings are partial payment in cash(when I buy the car in the EU for import). Essentially the person whom I intend buying these cars from in the Eu wants equivalent of £2,000 paid in cash in person upon inspection of the car and then the balance as CHAPS transfer from the bank in the UK. Is this acceptable to HMRC if he writes out a receipt, even though he is a private seller and the bank transfer will show £2,000 less in outgoings? As mentioned, he shall be paid £2,000 in cash in person to reserve the car .
4. My husband intends loaning me the capital to buys these cars, after taking a personal loan form the bank(he has good credit and I cannot get a loan under my name). Can he transfer the funds in to my account for the business for transparency or can he make payment to the person I intend to buy the car from. I want the business under my name as I am not employed and he is presently in the 40% tax bracket. Also, if he flys to inspect the cars, the air plane ticket shall be in his name . Can I still claim this as an expense. As a woman I have sound knowledge of cars but my husband has a better understanding of the Italian language(where I intend buying these cars from)
If I register myself as sole trader with the company name as just my full name, can I still register the car in my name(same as the company). Whilst this might add an owner(this is fine by me), I can use these cars from private use. Or do I still have to go through trade plates from the DVLA and trade insurance. I can then not use these cars for personal use.
HelloYou can’t charge VAT on exempt or ‘out of scope’ items. You must register for VAT with HM Revenue and Customs (HMRC) if your business’ VAT taxable turnover is more than £82,000. VAT taxable turnover is the total value of everything you sell that isn’t exempt from VAT.If you use for personal then you would not need plate insurance.All payments to you count for NI.Any expense you claim must be directly related to the business. If you husband is not in the business then his expense is not claimed by you. Unless you intend for your husband to be a part of the business or hire him then his expense is not counted. If you register under your name then no trade plates and you are not using for business.You should really keep all the business and personal separate if you intend to do this.
Customer: replied 2 years ago.
Hi thank you for your response. As I shall be eventually selling the car for profit, I will naturally declare this. To clarify, i still have to register for VAT on these car if my turnover is more than £82,000, even though these cars are VAT exempt?
No you would not register for VAT if your sells are exempt.There would not be a requirement to register unless your taxable turnover meets the £82,000. You are most welcome.You are required to click a positive rating if I am to be credited with the response.
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