Jay's Mechanics... needing some advice..

[Jordi]

B+E licence. Dont forget the recent changes too. Regardless of the tow vehicles capactity as of Jan this year gross train weight can not exceed 3.5t.

The scrap metal is a by product of the business. As said before collect it and weigh it in. All of our scrap at work goes into a tipper and gets weighed in when its full or the price is good.

If your going down the "i do it as a hobby" route. Don't need to register for anything. This would have to made aware to all those you sold cars too though as you wouldn't be a dealer and would provide no guarantee or warranty. Also check the law. Due to the nature of work provided you may be legally obliged to provide some form of warranty on work undertaken if it was a business.

Recovery truck only needs a tacho of its gross is over 3.5t. Transit / sprinter beaver tail for car transport or recovery no tacho required. Anything bigger then your talking tachos, o-licence, C1 or C driving licence.

Not sure what kind of turn over your looking at in money terms but you would need to check the limit before VAT must be registered for.

Jordi

[Newtomud]

I think the VAT limit is about £50k ??
Edit.. £61k in a year ( according to jeeves )

[Jordi]

I thought it was £75k. Sounds daft but could easily be achieved buying insurance write offs and repairing them. Not as common as it used to be but i'm sure some classes of writes can still be repaired.

Jordi

[Jay18]

well each month i need to make enough to pay the £425 a month running costs which includes the rental on the unit and the traders insurance, im looking to do two cars a month, and im looking at doing diagnostics awel, which ill be charging £35 for a diagnostics check to make up more money to pay the bills and a bit of money in my pocket for more tools etc...

i dont want to go crazy with it at the moment just want it to be on the quiet but legal, i am seeing it as more of a hobby than a business at the moment, maybe after a year if it picks up ill get vat registered etc....

is there a limit on how much i can have incoming before i have to register a business?

im a little overwelmed with all of what i need to do to keep it all legal

i still have my cleaning job which is only an hour and a half a day which pays the loan i will be getting if i can work it all out properly... so i am still employed..

[Newtomud]

http://www.hmrc.gov.uk/vat/start/regist ... gister.htm

Found this if it helps ?
If your looking at£425 a month.. forget VAT/No worries

[Jay18]

so registering for vat is not something i will have to do, its just optional?

is there a way to contact a business advisor for this sort of thing, just to see what i will need to do to keep it all legal? as this is confusing me a little lol i just need a list of things that i NEED to do to keep it all legal...

[Newtomud]

so registering for vat is not something i will have to do, its just optional?

is there a way to contact a business advisor for this sort of thing, just to see what i will need to do to keep it all legal? as this is confusing me a little lol i just need a list of things that i NEED to do to keep it all legal...

Small business advisor at the bank?(normally free advice)

[Jordi]

You don't need to register a business with companies house if you don't want to. You can be a sole trader. That means you are liable for all the financial dealings of the company its all in your name.

If you become limited it gives a certain amount of protection as everything then belongs to the company. As it is such a small company you would still be liable to a certain degree. Not like you can blame anyone else when things go wrong.

VAT is a legal requirement once turnover gets to a certain level, it will say on HMRC website.

Again diagnostics is providing a service to people, its a business. Public piability insurance required.

So thats £425 a month before any parts or paint or a wage for you. So if you want £12000 a year wage its £1425 a month. Say you turn a car around at a cost of £500 in parts and consumables x2 cars thats £2425 a month. Plus the car purchase prices of a few hundered to a few grand depending on what kinda cars your doing?

So you need atleast £3k a month coming in. Thats if you are given the cars for free. I'm not trying to paint a bleak a picture for you. I know when i priced up buying and running one truck i had to turn over min £110k!

Jordi

[Jay18]

hmm starting to look very expensive now, im looking at buying cheap cars for £100- £300 and doing work on them ie to get an mot on them plus tax them and make some profit on them, would it be a good idea to start mobile? would that be cheaper?

im thinking maybe insure the zuk at £1900 a year and chuck tools in the back since it is a van and then i would only need public liability insurance right? would it be eaier to start off mobile and cheaper?

[Jordi]

Put it this way £425 rent, £1000 salary, 2 cars at £500 (when you buy em'), £500 a car to repair. Total £3425. So a £500 quid car has to turn into a £1800 car.