Have you been thinking about setting up your own business for a while?
There’s no doubt about it, the UK motor trade offers a practical, achievable way of setting up on your own and becoming self-employed. But what do you need to know?
Apart from the obvious knowledge of basic vehicle mechanics and a firm grasp on the value of vehicles, here are our key things to think about when setting up a motor trading business.
Find out what the competition are doing
What other motor traders are in your area? Where are they located? Consider proximity to other competitors before deciding on where you should run your business from.
Adequate motor trade insurance
Adequate motor trade insurance is not just a necessity, it’s required by law. You can get a motor trade insurance policy to suit you no matter what your circumstances – whether you only need it to cover the premises you work from, or also on the road. If you only work part time or use your home as your work premises, there are policies to cover that, too.
It’s good business practice to record all documents such as sale receipts, receipts for parts and logbooks. And remember, every time you buy or sell a motor, you must add it to the motor insurance database.
Stay on the good side of HMRC
By law, self-employed motor traders must complete annual tax returns. Also, if your annual turnover exceeds £73,000, you must register for VAT.