About 75% of the enquiries we receive are from customers involved in new part time motor trading ventures, unfortunately it is so tempting - especially for part timers - for the operation to be run on a “cash in hand” manner and thus avoiding the usual tax implications.
This is of course "illegal" and insurers cannot and will not condone the activity, therefore they will make relevant checks sometimes randomly and almost always when a claim is made.
It is not difficult keeping records, if you are buying and selling vehicles you need only keep a list of the vehicles going through your hands along with the relevant purchase receipts and sales receipts – hopefully this should show that you are making a profit.
If you are in the service sector then you need to keep records of your purchases along with copies of your invoices for work carried out.
If you would like to get a quote for a part-time motor trade policy please click here for more info.