A bit of a Tax question

[chippie]

And since when did a taxman give opinions?

They don't, they give facts. So, here goes.....

It would appear that you are trading, and therefore this is income. ALL income must be declared to HMRC, wether a tax liability arises or not.

You are self employed, and therefore should tell HMRC that you are self employed within three months of starting. You should also be completing self assessment tax returns, and should look at national insurance too.

You should have a look at http://www.hmrc.gov.uk/guidance/selling/index.htm for more information.

 

[[TW]Fox]

Its a hobby. It started when I got gifted a Renault 5. I replaced the suspension and radiator, and hey presto, it worked! When I fix the cars I can't keep piling them up. They have to go.

No, its a business. You are adding value to old cars and selling them, for profit, to customers.

 

[Ricochet J]

No, its a business. You are adding value to old cars and selling them, for profit, to customers.

Alright, it's both. What do you advise I do with three cars sitting there (with Road Tax before you ask) which will give me back only the money I spent on the parts however which will also result in me having zero profit?