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Men and motors
I act for a sole trader who runs a motor vehicle repair business from his home premises. Turnover is £40,000 and net profits about £20,000. The client proposes to deal in secondhand motor vehicles. He expects to sell about ten cars a year for a total of £20,000. Gross profit on these cars is likely to be £5,000. The client is not registered for VAT and preferably would not want to be, as his customers are the general public.
Men and motors
I act for a sole trader who runs a motor vehicle repair business from his home premises. Turnover is £40,000 and net profits about £20,000. The client proposes to deal in secondhand motor vehicles. He expects to sell about ten cars a year for a total of £20,000. Gross profit on these cars is likely to be £5,000. The client is not registered for VAT and preferably would not want to be, as his customers are the general public.
I should be grateful if readers would advise if the client should register for VAT as the threshold will be exceeded, or is the situation more complicated bearing in mind the secondhand goods marginal scheme?
(Query T15,808) — AH.
