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Where Taxpayers and Advisers Meet

Should i be paying Income Tax ? Importing cars part time?

davephillips
Posts:6
Joined:Wed Aug 06, 2008 3:28 pm

Postby davephillips » Wed Aug 31, 2005 10:27 am

hello

i have imported approximately 7 cars from Japan to the UK and sold them on.
on 2 of them i made a loss, on the others i made a profit, but all in all, i worked out i made a profit of £5000 from all of them so far.

i have got a "PSEUDO TURN NUMBER" which the HM customs gave me. It is a temporary VAT number for individuals who have not met the VAT threshhold and has the record of all vat,duty paid on each car ive imported.

ive been paying 10% duty and 17.5% VAT on the cars to get them cleared so i can collect them.

Its been a year since the 1st car was imported.

However, i have not registered as self employed nor have i filled in an Income tax form since i began as i have been doing it part time while still in college.

Should i fill in an income tax form now and write myself as part time or as a business?
and am i breaking the law by not filling in the income tax form?

And will i need to show receipts of the prices of the cars i have sold?

if i continue to do 1 or 2 cars a month will the Inland Revenue contact me to ask me about what i have done with any money?

i would appreciate any advice anyone can give me,

ive read the customs website on VAT, but it doesnt say anything about Pseudo turn numbers.

thanks

deanshepherd
Posts:1019
Joined:Wed Aug 06, 2008 3:23 pm

Postby deanshepherd » Wed Aug 31, 2005 10:41 am

Hi Dave

Given that you are purchasing cars for resale at a profit, then that will constitute carrying on a business for which you will need to notify the Revenue.

There is a £100 penalty for late notification, although this may be avoidable given your level of profit thus far.

VAT may or may not be an issue for you, it really depends on how much you are selling the cars for.

Feel free to email me if you would like me to send you a free Business Start-up Guide. I think it will answer many of the questions you may have.


Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk

davephillips
Posts:6
Joined:Wed Aug 06, 2008 3:28 pm

Postby davephillips » Wed Aug 31, 2005 10:57 am

well,
these are the prices that ive sold the cars for

£3100
£2800
£4500
£4600
£3800

etc

ill send you an email

davephillips
Posts:6
Joined:Wed Aug 06, 2008 3:28 pm

Postby davephillips » Wed Aug 31, 2005 10:58 am

also

the first car was done in July 04
and the most recent was done in July 05

so thats 7 in one year.

petermccluskey
Posts:1
Joined:Wed Aug 06, 2008 3:29 pm

Postby petermccluskey » Tue Sep 13, 2005 4:44 am

Hi David,

I have been doing alot of research into importing cars from Japan and am in contact with 2 companies which seem to offer the best price for their services. They are both well credited with several governing bodies in Japan.
A PSEUDO TURN NUMBER is so the government can claim VAT payable on non VAT registered business.
I am self employed and aware of benifits you can receive by persuing this route. There are many areas you can claim back money as expenses which will reduce your profit, and therfore tax. Any item you use in relation to importing your vehicles will be classed as an expense e.g internet expense, computer, cost for collecting vehicle (including food/fuel etc), Insurance on you current vehicle if used for collecting vehicle, stationary..........you get the picture.
I am not an accountant but am very familier with self employment and the benifits. My internet e-mail is peter_mccluskey@hotmail.com but I have a private mail I can forward if you reply to this e-mail address. I would exchange information I have on this matter for information you have on importing. I am aware of the forms etc as I too have read in detail from the HM customs web site.
I look forward to hearing from you.

Best regards,

Peter.

AshKhan
Posts:3
Joined:Wed Aug 06, 2008 4:04 pm

Postby AshKhan » Fri Jan 25, 2008 2:30 pm

hello i am going to be importing cars from japan and i need to now if i wolud need to register a copmpany before applying for a pseudo vat number if any one has any information about this could you please let me now by emailing me on the followin address japsportcarsuk@hotmail.co.uk
thank you

AshKhan
Posts:3
Joined:Wed Aug 06, 2008 4:04 pm

Postby AshKhan » Fri Jan 25, 2008 2:36 pm

hello i would also like to now if i wolud need a pseudo vat number for importing cars for the first time to the uk
thank you

AshKhan
Posts:3
Joined:Wed Aug 06, 2008 4:04 pm

Postby AshKhan » Fri Jan 25, 2008 2:37 pm

hello i would also like to now if i wolud need a pseudo vat number for importing cars for the first time to the uk
thank you


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