van hunting time!

[Part Timer]

The van doesn’t cost you a penny if you pay Tax, it’s offset against tax.
If you don’t pay your taxes, obviously it’s better the way you do it.
Brand New van every three years, why do you think you see so many new vans in the road.
Lease payments are 100% deductible.

So you can claim the "full cost" against your profits. You do realise that this saves you, depending on your company's profitability, circa 20% tax.
In other words it is still costing you, or your company around 80% of the lease payment. Without trying to be rude I think you need to learn about how to run a business and the actual costs incurred and possibly get an Accountant that gives you correct advise.

 

[Bell Pallisey]

lugging around a big water tank you need something newish

 

[Crystalalan]

Will keep you guys posted on how I get on with it. Always good to review something as expensive as a van as I know a lot of windies ask what van to get.

 

[Iron Giant]

The van doesn’t cost you a penny if you pay Tax, it’s offset against tax.
If you don’t pay your taxes, obviously it’s better the way you do it.
Brand New van every three years, why do you think you see so many new vans in the road.
Lease payments are 100% deductible.

If I don't pay taxes I have been in business 24 years I pay taxes

 

[Pjj]

Speak to your accountant bud, maybe he can educate you.

lol I don’t think you can offer me any advice on this subject I have been self employed most of my life and know how to run a very successful business with employees, if it were as simple as you make out we would all be retired living in desert islands years ago

 

[marlowswindows]

lol I don’t think you can offer me any advice on this subject I have been self employed most of my life and know how to run a very successful business with employees, if it were as simple as you make out we would all be retired living in desert islands years ago

Think it's Scottish on anew account. Guy knows everything

 

[dazmond]

The van doesn’t cost you a penny if you pay Tax, it’s offset against tax.
If you don’t pay your taxes, obviously it’s better the way you do it.
Brand New van every three years, why do you think you see so many new vans in the road.
Lease payments are 100% deductible.

I prefer to lease too but your still paying tax whether you buy your van outright or pay a monthly rental!both can be offset against tax.both are expenses and tax deductible!I just find it simpler to lease in relation to recording it as an expense.

Also the downside of leasing is I have to pay VAT on my RFL which I didn't know before I started leasing.this year it was £384!

Whether you prefer to buy a second hand van outright or lease it's up to the individual window cleaner they both have their pros and cons.

 

[Chris W]

The vast majority will still be paying tax , you said that you wouldn’t be paying tax that’s a load of rubbish

What I said was the money you use to lease the van will come off your tax bill.
I was trying to explain in the most simplest of ways to obviously someone who needs it to be explained in the most simplest of ways.
If you tax bill was £2500 and the cost of the van to lease was £2500, then you would have no tax to pay.
If your van to lease was £2500 and your tax bill was £4000, you would only have to pay £1500 tax.
So not a load of rubbish if your can understand a simple equation.

 

[Chris W]

So you can claim the "full cost" against your profits. You do realise that this saves you, depending on your company's profitability, circa 20% tax.
In other words it is still costing you, or your company around 80% of the lease payment. Without trying to be rude I think you need to learn about how to run a business and the actual costs incurred and possibly get an Accountant that gives you correct advise.

Van Leasing Tax Benefits​

Although there are tax liabilities associated with certain types of use of company vans, there are also ways to reduce the tax burden, and one of these is by leasing a van.

It is an alternative to owning them outright.

If a business enters a van leasing deal, it is treated, for tax purposes, in the same way as renting a vehicle.

The lease payments are a fully tax-deductible expense in profit and loss accounts.

 

[TimBooth]

Leasing a van is the best way, why use your own money to buy a van which depreciates and needs money spent on maintenance.
Business Lease payments on a van are 100% Tax Deductible.
Basically if your tax bill is £2500 a year and your lease payments are £2500 you won’t pay any tax , why give that to the tax man when you can drive around in a brand new van.
It’s not rocket science.

Not so!

If your tax bill were 2,500 and your lease payments are 2,500 you will have reduced your profit by 2,500.

So your tax (and NI) bill will only be reduced by about 29% of the 2,500 which is around 725 so you would reduce your tax bill from 2,500 to 1,775

 

[Part Timer]

Van Leasing Tax Benefits​

Although there are tax liabilities associated with certain types of use of company vans, there are also ways to reduce the tax burden, and one of these is by leasing a van.

It is an alternative to owning them outright.

If a business enters a van leasing deal, it is treated, for tax purposes, in the same way as renting a vehicle.

The lease payments are a fully tax-deductible expense in profit and loss accounts.

Let's try and make it simple for you. If you make a profit of £20k your tax bill will be circa £4k. If you then lease a new van and it costs you £5k, your profit will be £15k and your tax bill will be £3k, a saving of £1k.
However you've spent £5k leasing the vehicle so it has still cost you £4k.

 

[ched999uk]

Van Leasing Tax Benefits​

Although there are tax liabilities associated with certain types of use of company vans, there are also ways to reduce the tax burden, and one of these is by leasing a van.

It is an alternative to owning them outright.

If a business enters a van leasing deal, it is treated, for tax purposes, in the same way as renting a vehicle.

The lease payments are a fully tax-deductible expense in profit and loss accounts.

That text comes from a Van leasing company!!! https://www.letstalkleasing.co.uk/news/advice/what-tax-benefits-leasing-van
They are going to be biased as the only way they have a business is if people lease vans!

The big difference is you are paying the lease fee forever!!!! When buying a van the payments stop eventually! OK so you will to pay for repairs and servicing but it can be significantly cheaper over say 6 years to buy rather than lease.
Remember it's not all about your tax bill, it's what is left in your pocket that counts.

There are advantages and disadvantages to leasing and purchasing a van. The only people who can advise you on how to minimise your tax bill and maximise your profits are an accountant. Tax is a very complex thing, understanding and interpreting the rules is a skilful job - there are good accountants and cheap accountants!

 

[dazmond]

Not so!

If your tax bill were 2,500 and your lease payments are 2,500 you will have reduced your profit by 2,500.

So your tax (and NI) bill will only be reduced by about 29% of the 2,500 which is around 725 so you would reduce your tax bill from 2,500 to 1,775

Exactly Chris W needs a check up from the neck up!that's probably why he's a window cleaner and not an accountant!

 

[Pjj]

Let's try and make it simple for you. If you make a profit of £20k your tax bill will be circa £4k. If you then lease a new van and it costs you £5k, your profit will be £15k and your tax bill will be £3k, a saving of £1k.
However you've spent £5k leasing the vehicle so it has still cost you £4k.

Well done Richard well explained , but I think it will go straight over his head

 

[Pjj]

What I said was the money you use to lease the van will come off your tax bill.
I was trying to explain in the most simplest of ways to obviously someone who needs it to be explained in the most simplest of ways.
If you tax bill was £2500 and the cost of the van to lease was £2500, then you would have no tax to pay.
If your van to lease was £2500 and your tax bill was £4000, you would only have to pay £1500 tax.
So not a load of rubbish if your can understand a simple equation.

I do have a few vans and am well aware of how it works but thanks for your explanation ime sure my accountant will find it interesting and very helpful

 

[adamangler]

Someone can't do basic maths. It matter not whether you buy the van or lease it you can claim the full cost agaisnt tax.

Buying or leasing a new van isn't the most efficent option due to depreciation.

I bought a new van is 2022 it was 30k Inc vat.

Market value now is about 17k. I'm not vat registered so I've lost 13k in 2 years already.

I put the our chase price agaisnt tax so saved their but being a ltd company it also attracts a bik payment....

Probably the most tax efficent way is to buy an older van and claim the mileage rate instead depending on how many miles you do.

 

[Part Timer]

It matter not whether you buy the van or lease it you can claim the full cost agaisnt tax.

This is where people get mixed up, you can claim the full cost against profit, not tax, but you only pay circa 20% tax on profits.

 

[Clearview Lee]

Can't you look at leasing a brand new van?the monthly payments are easily affordable for most of us and tax deductible too.your taking a chance with older vans.most have been hammered which is not ideal for carrying a lot of water in the back.then you can look forward to many years of trouble free motoring and no downtime.also it's not a big outlay all at once.you could have a new van on your drive within a few weeks for 3 months rental.

I’m thinking about paying the initial deposit (3.5k) then buying a new van. What d’ya think? Only thinking this way for sign-writing it and also the drilling etc otherwise I’d consider leasing

 

[ched999uk]

I’m thinking about paying the initial deposit (3.5k) then buying a new van. What d’ya think? Only thinking this way for sign-writing it and also the drilling etc otherwise I’d consider leasing

Ask your accountant what is the most cost effective way to get a newer van. They should have a good idea based on previous years income and expenditure to inform you how to minimise you tax liability.

 

[dazmond]

I’m thinking about paying the initial deposit (3.5k) then buying a new van. What d’ya think? Only thinking this way for sign-writing it and also the drilling etc otherwise I’d consider leasing

Mines leased and sign written.ive also had a diesel hot water system fitted but mines 7 years old now and no plans to hand it back anytime soon.

 

[ched999uk]

Mines leased and sign written.ive also had a diesel hot water system fitted but mines 7 years old now and no plans to hand it back anytime soon.

Do you know how much you have paid over the 7 years?