Buying a van

[chris day]

hello guys

I am quite inexperienced at buying vans in a tax efficient way.
From experience what is the best way to buy a van and then able able to claim the costs back against your taxable prophets?

 

[telectrix]

this prophet?

seriously, i'm a believer in buying older for cash, none of this finance or leasing crap and worrying if you get it scratched. i really pushed the boat out 2 years ago and spent a massive £1500 in my current van. all it's cost in 2 years is £60 on an oil and filter change ( apart from 2 MOT fees , passed straight through both ).

 

[Gavin John Hyde]

Best advice is go see an accountant. ask around for recommendations in your town. especially if you want to deal with vat in the right way, mine told me to register before hitting the threshold as i have a huge amount of outgoing in my first year on my own.
It all helps with cash flow when it comes back
A good accountant will save you more than you pay him or her... they will find things you never even thought of to reduce your tax liabilities. the same goes for the van and how you buy and account for it in your books.

Meant to add aswell that i agree with above ^ that buying new isnt always the best option. i spent £3k plus vat for mine. its 7 1/2 years old but never failed an mot either so fingers crossed. buying a new van or leasing is not always a good idea. apparently they are clamping down in vehicle finance too as they reckon its the next big financial crash all these dodgy vehicle loans.

 

[Octopus]

Don't even consider a PCP or a Lease agreement unless you are 100% sure of your mileage

If you spend, say £10K on a van, you can claim £2K back off your tax at the end of the SAME financial year.

All costs incurred are business expenses and are offset against your PROFITS....

If you have deep pockets and can buy outright, then consider an ex demo unit.... or even new........... but then you need to aim to keep the vehicle for 10 years......... or buy 5/6 years old and take a BIG gamble

Financing a vehicle needs careful thought..... if you are a new business, no bank is likely to lend you any money

As others have said, consult your accountant.

 

[Rpa07]

Don't forget the stripey carpet - that stuff ain't cheap!

seriously, i'm a believer in buying older for cash, none of this finance or leasing crap and worrying if you get it scratched. i really pushed the boat out 2 years ago and spent a massive £1500 in my current van. all it's cost in 2 years is £60 on an oil and filter change ( apart from 2 MOT fees , passed straight through both ).

 

[D00DY_T00DY]

this prophet?

seriously, i'm a believer in buying older for cash, none of this finance or leasing crap and worrying if you get it scratched. i really pushed the boat out 2 years ago and spent a massive £1500 in my current van. all it's cost in 2 years is £60 on an oil and filter change ( apart from 2 MOT fees , passed straight through both ).

You at it with all these monty python quotes and videos again

I agree with the cheap, work horse for vehicles. Both my cars have been less than £1000. My current fiesta has needed a bearing(£60)
New rear shoes and cylinders(£100)
Did the front brake and pads but didn't need it(that's when I found out it was the bearing) £100

Paint works absolute rubbish however the clutch is a dream.

(Sorry OP can't help with your question)

 

[Rpa07]

Bloke/mentor that I did 14 months with used to lease a VW for 330 a month, put that on top of his rent of 850 He had to earn 1200 before he even made anything - madness. Buy less expensive, buy outright or small loan and look after it. There are plenty of good vans out there and you don't have to spend the earth.

 

[D00DY_T00DY]

Bloke/mentor that I did 14 months with used to lease a VW for 330 a month, put that on top of his rent of 850 He had to earn 1200 before he even made anything - madness. Buy less expensive, buy outright or small loan and look after it. There are plenty of good vans out there and you don't have to spend the earth.

And it's yours.
I hate having debt hanging over me.
They all get you from a to b.