Posted by scott Should I buy a car through my limited company? By Scott Ferguson Thinking of buying a car through your limited company? At first this can seem like a great tax saving idea, but it is important to consider all of the associated costs and tax implications before deciding whether to invest. The purpose of this blog is to summarise the obvious, and perhaps not so obvious, implications to aide you in making this decision and also to touch on some of the other important points to consider around business travel.
Before Octobera used car could be sold with any existing road tax officially known as vehicle excise duty or VED being carried over to the new owner.
It was simple, straightforward and everybody understood how it worked.
So obviously the DVLA decided to completely screw the whole thing up. Starting in Octoberroad tax no longer carries over when you buy or sell a used car. Instead, the new owner has to purchase road tax before taking possession of the vehicle from the previous owner.
Understandably, this creates more hassle for buyers, as you have to either go online or call the DVLA and pay road tax before you can drive off in your car — even though the previous owner has already paid road tax for the vehicle.
Selling your car privately?
Get tips on handling cash from The Car Expert Because the DVLA is antiquated and unable to cope with the 21st-century world we live in, it is only able to process road tax on a monthly or annual basis. So if you buy a used car on the 15th of the month, you have to pay road tax for the whole month. Therefore the DVLA has effectively double-taxed the vehicle for that month.
Both buyer and seller have to tax the car for a full month each time a used car is sold or transferred. More than eight million used cars are sold each year in the UK. Road tax when selling a car: You will only receive a refund for any whole months of road tax outstanding, so if you sell your car on the first of the month then you still have to pay for that full month of road tax.
Road tax when buying a car: When you buy a used car, you must pay road tax before driving off in the vehicle. Even if your car is just parked in the street, you must pay road tax.
You can pay your road tax: So not only are you liable to be fined, but if you are involved in an accident or have your car stolen, your insurance will not be valid.
How are road tax transgressions enforced? However, that very rarely happened anyway. Today, road tax checks are all done electronically.
Police use Automated Number Plate Recognition ANPR cameras to catch owners of untaxed vehicles on the road, and have been doing so long before the tax disc was taken out of circulation.
The DVLA makes vehicle database checks on vehicles every month.
Alternatively, your car may be impounded.A private car sale can be an attractive proposition, but have you considered the practicalities, paperwork, insurance cover and other implications?
A private sale can be financially attractive for both parties, but you need to know what you're doing Be on your guard and check all appropriate. I've sold my car (privately, not to a garage) and the person is coming to collect it on Saturday, as i'm being paid in cash I want to write a receipt to the person buying it but need help on what i could write on the receipt so it is all legal and binding (if that makes any sense)?
A car sales receipt should include vehicle information, confirmation of the exchange of documents, a paragraph describing the nature of the sale, and personal information of the buyer and seller. Buyers will need to present the vehicle reciept along with the car title and completed registration form to the DMV.
Buying a used car will save you bundles of cash if done properly, follow these tips to beat the used car salesman at his own game. Get the facts before buying or selling a car in Colorado.
Handmade UK Handmade at Amazon is a new store on the European Amazon marketplaces for approved artisans to sell their unique, handcrafted goods to . How to sell your car privately. Write a receipt and make two copies – one for you and one for your buyer. It should include the date, price, registration number, make and model, plus you and your buyer’s names and addresses. Selling your car privately can expose you to thieves posing as potential buyers. Here are some recent scams. Any used car bought by a private buyer from a trader, whether it costs £ or £,, is covered by the Consumer Rights Act Within certain constraints, this allows you to .
Learn more about CO vehicle tax, obtaining a bill of sale, transferring vehicle ownership, and more. May 21, · I once sold a car to a law lecturer who confirmed that 'sold as seen and tested' is worth putting on the receipt; he quoted me the test case of someone who tried to take the car back when.