Discuss Buying a new van,tax allowance? in the Electrical Forum area at ElectriciansForums.net

Welcome to ElectriciansForums.net - The American Electrical Advice Forum
Head straight to the main forums to chat by click here:   American Electrical Advice Forum

Chris

-
Reaction score
26
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
 
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.
 
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?
 
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.
 
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
 
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.
 
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.
You spoil that van, that £15:02 in fuel is more than you spent on the wife for Christmas/Valentines/Birthday/Anniversary rolled in to one ;o))))))
 
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.

Thats helpful thanks, so its easier as you just count your mileage and claim 45p each as opposed to keeping repair receipts/purchase costs/ fuel receipts?
 
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
My accountant saves me more each year than I pay him.
He'll be able to tell you the best way to claim for capital outgoings and how to deal with this sort of thing
.......... so its easier as you just count your mileage and claim 45p each as opposed to keeping repair receipts/purchase costs/ fuel receipts?
 
Thats helpful thanks, so its easier as you just count your mileage and claim 45p each as opposed to keeping repair receipts/purchase costs/ fuel receipts?
Yep :), but note Baddegg's reply above.

edit... actually, I'm not sure about keeping receipts for petrol. I just keep a mileage record for all work related business, as if you use this method then the tax man is not interested in what you have actually spent on fuel, they just want to know the milage you have done.

I keep meaning to look into some sort of app on the phone that could record all work trips
 
Speak to your accountant, this is how I worked it.

25% per annum depreciation:


Initial cost 1000

Year one 1000 – 250 = 750

Year two 750 – 187.5 = 563

Year three 563 – 140.75 = 422.25

Year four 422.25 – 105.56 = 316.69

Year five 316.69 – 79.17 = 237.52

And so on


The asset never reaches £0. If you sell then the price you get is deemed profit.
 
Yep :), but note Baddegg's reply above.

edit... actually, I'm not sure about keeping receipts for petrol. I just keep a mileage record for all work related business, as if you use this method then the tax man is not interested in what you have actually spent on fuel, they just want to know the milage you have done.

I keep meaning to look into some sort of app on the phone that could record all work trips
You could use fuely as a starter.
 
Yep :), but note Baddegg's reply above.

edit... actually, I'm not sure about keeping receipts for petrol. I just keep a mileage record for all work related business, as if you use this method then the tax man is not interested in what you have actually spent on fuel, they just want to know the milage you have done.

I keep meaning to look into some sort of app on the phone that could record all work trips
I just use the previous years mot cert to record the mileage....only use my van for business
 

Reply to Buying a new van,tax allowance? in the Electrical Forum area at ElectriciansForums.net

OFFICIAL SPONSORS

Electrical Goods - Electrical Tools - Brand Names Electrician Courses Green Electrical Goods PCB Way Electrical Goods - Electrical Tools - Brand Names Pushfit Wire Connectors Electric Underfloor Heating Electrician Courses
These Official Forum Sponsors May Provide Discounts to Regular Forum Members - If you would like to sponsor us then CLICK HERE and post a thread with who you are, and we'll send you some stats etc

Electrical Forum

Welcome to the Electrical Forum at ElectriciansForums.net. The friendliest electrical forum online. General electrical questions and answers can be found in the electrical forum.
This website was designed, optimised and is hosted by Untold Media. Operating under the name Untold Media since 2001.
Back
Top
AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock