Originally Posted by
Escy
I'm looking to get my 1st trade insurance policy, had a cracking price quoted. One of the things they ask is for proof of a trading history if I need to make a claim. (which I won't unless something get's stolen)
I've been buying an selling cars for a few years, I tended to buy a car I liked that needed work, fix it, run it a while and sell it on for a profit, it was more about it being a hobby than for money. Would go through 6-7 cars a year (some i'd break for spares) although didn't put them all in my name, some on the missus name.
Now I was buying private and selling private. This means no paper trail. I was planning on keeping it like this. Was aiming for selling one a month, so no major operation.
Anyone know if i'm going to encounter any issues keeping it like this? (thinking warrenty and tax)
Do you need receipts for everything you own if you have a trade insurance policy?
You'll probably be fine, but you are potentially opening yourself up for a massive world of pain.
If you ever have an accident and end up with some 50K third party payout being taken against your insurance company they will sue you to recover the money from you if you are in breach of contract.
To prove you are a trader in their eyes, you'll need tax returns showing you were, and if you claim you were trading without paying tax, then instead of just an insurance company on your back its then the taxman, and then thats straight off to prison.
You are 99% likely to get away it as you'll probably not have a claim etc, but if you do you really could be tieing yourself up in some massively awkward legal issues.