Buying a new van,tax allowance?

[Chris]

Hi,

I am looking at getting myself a new van on a hire purchase agreement, payments will be £230 a month for 4 years.

Will i be able to claim this back off the tax each year? So 230 x 12 per year?

or can i only claim back the initial cost in this tax year?

Thanks

 

[telectrix]

afaik, taxman allows you 25% of purchase price 1st year, then 25% of 75%, then 25% of 50%, then final 25%. (percentages referred to purchase cost), then it's written off as a "dead" asset, but you may have to pay tax if you sell it. if the HP has interest charges, you should be able to claim against that also.

 

[Chris]

afaik, taxman allows you 25% of purchase price 1st year, then 25% of 75%, then 25% of 50%, then final 25%. (percentages referred to purchase cost), then it's written off as a "dead" asset, but you may have to pay tax if you sell it. if the HP has interest charges, you should be able to claim against that also.

Thanks, so if van was say 10,000 i could claim
25% of 10,000 year 1
25% of 7500 year 2
25% of 5000 year 3
Then 25% of 2500 year 4?

 

[telectrix]

think i got it wrong. should work out 25% of purchase per year, so it's considered worthless end of year 4. never bought a newish van. always something under a grand, splashed out on the hiace tough 4 years ago. was 1.5k. ..still it cost me nowt over 4 years except oil, brake pads, and 2 tyres. due for it's 2nd cambelt now @ 203600 miles.

 

[Chris]

I bought myself a combo for 1800 3 months ago and its just died on me!

 

[Octopus]

I would say talk to your accountant ....

 

[Octopus]

think i got it wrong. should work out 25% of purchase per year, so it's considered worthless end of year 4. never bought a newish van. always something under a grand, splashed out on the hiace tough 4 years ago. was 1.5k. ..still it cost me nowt over 4 years except oil, brake pads, and 2 tyres. due for it's 2nd cambelt now @ 203600 miles.

I've given you a disagree as it's a percentage of the remaining value each treat, not the initial value

 

[Chris]

I would say talk to your accountant ....

I dont have an accountant just yet, i work for a company and have just recently registered myself to napit to sign off my own work and build up to eventually go self employed! Thats the dream anyway..

need to find myself a good accountant

 

[HappyHippyDad]

With regards to income tax (not VAT) you have 2 choices related to motor expenses. Whichever choice you make you have to stick with for the rest of the time the business is running.

1. Claim for all expenses, including purchase of van (90% sure).

Or

2. Claim 45p (changeable) per mile travelled, but no other costs related to van.

I find the latter far easier.

 

[telectrix]

I've given you a disagree as it's a percentage of the remaining value each treat, not the initial value

so i was right first time, wrong when i changed mymind. i can live with it. .