Advise on new van against tax ?

[J.Hargreaves]

Looking at a new van how would this go against tax , or how would it benefit my company !

 

[ched999uk]

Best to ask an accountant as we have no idea on your status - ltd, sole, etc or profit levels.
They might tell you that it's more tax efficient to lease but only they can give you proper advice tailored to you.

 

[spruce]

Looking at a new van how would this go against tax , or how would it benefit my company !

Agree with @ched999uk response. You could also contact your local tax office and pop in to see them.

 

[Part Timer]

Looking at a new van how would this go against tax , or how would it benefit my company !

When you say "new" are you talking new to you or brand new

 

[P4dstar]

When you say "new" are you talking new to you or brand new

Fair question, my accountant gave me some spiel about how my Transporter was claimable at 120% or something. Made no difference to me. I believe it makes a difference to corporation tax through capital gains.

 

[ched999uk]

Fair question, my accountant gave me some spiel about how my Transporter was claimable at 120% or something. Made no difference to me. I believe it makes a difference to corporation tax through capital gains.

I seem to remember the 120% was something post covid about capital expenditure relief. Not sure it's still at 120% now.

 

[P4dstar]

I seem to remember the 120% was something post covid about capital expenditure relief. Not sure it's still at 120% now.

No idea. They always have something going on. Doesn’t make much of a difference to us as individuals either way.

 

[Cuthbert]

What about my low mileage Renault trafic, with no vat, if that is of interest to you, give me a call 07443692607

 

[dazmond]

I used to put the whole cost of my vans through in one tax year but my vans only used to cost £1200-£2000 secondhand....

Nowadays I just put the van rental through every month which is nice and easy and simple.

I claim for EVERYTHING in regards to my van as its only used for work (as I have a separate car for leisure).All diesel,oil,servicing,tyres,brakes,MOT,RFL,commercial van insurance and breakdown cover.

 

[Part Timer]

I used to put the whole cost of my vans through in one tax year but my vans only used to cost £1200-£2000 secondhand....

Nowadays I just put the van rental through every month which is nice and easy and simple.

I claim for EVERYTHING in regards to my van as its only used for work (as I have a separate car for leisure).All diesel,oil,servicing,tyres,brakes,MOT,RFL,commercial van insurance and breakdown cover.

Make sure it's only insured for business only, and doesn't include domestic and pleasure, because HMRC are looking at 100% claims, so my Accountant advised.

 

[Iron Giant]

Make sure it's only insured for business only, and doesn't include domestic and pleasure, because HMRC are looking at 100% claims, so my Accountant advised.

Interesting as I do have 200 miles personal use on mine so a bit of cover for social use, I don't put a couple of diesel transactions through to offset this,

Because surely driving down the motorway way to clear the dpf is social use and in the event of a claim and me been miles away from home would need explaining

 

[ched999uk]

Interesting as I do have 200 miles personal use on mine so a bit of cover for social use, I don't put a couple of diesel transactions through to offset this,

Because surely driving down the motorway way to clear the dpf is social use and in the event of a claim and me been miles away from home would need explaining

Surely the dpf is blocking due to work use, so to maintain a work vehicle by giving it a good thrash should be fine. In my opinion, you have a valid business purpose for the journey, so no problem.
Stopping for a meal or shopping would probably be personal use though

 

[Part Timer]

Interesting as I do have 200 miles personal use on mine so a bit of cover for social use, I don't put a couple of diesel transactions through to offset this,

Because surely driving down the motorway way to clear the dpf is social use and in the event of a claim and me been miles away from home would need explaining

That's not personal and very easily explained as business

 

[RyeCleanLiam]

There are still thousands of people/businesses on the fiddle, and many big companies still using loopholes. They all still get away with this. I just can't see that HMRC have got the time to look through millions of van journeys to see if they are business or personal.

 

[dazmond]

Make sure it's only insured for business only, and doesn't include domestic and pleasure, because HMRC are looking at 100% claims, so my Accountant advised.

I do around 3000 miles a year in my van and 6000 in my car. I don't put the odd diesel fill up through for the odd time I'm not using the van for work but there's no way I'm not putting the
full servicing,tyres,brakes,MOT,commercial van insurance,RFL,rental,etc through as expenses!

I do my own tax return(cash basis)and expenses is just total figure not a detailed breakdown!

 

[Iron Giant]

That's not personal and very easily explained as business

I'll just not mention that I am driving down to Yorkshire in the van to go hiking on a Friday

 

[spruce]

When I first started, I booked an appointment with our local DWP office in Middlesbrough. The lady I had the appointment with explained what I could claim for as a legitimate business expense and what was not a legitimate business expense.

She also explained that a certain amount of vehicle expenses would be private and most would be business. It was up to each person to decide what the percentage difference would be according to their business. She did say that if we were working and decided to stop and go to the chippy for takeaways, that would be private use of the van.

 

[dazmond]

When I first started, I booked an appointment with our local DWP office in Middlesbrough. The lady I had the appointment with explained what I could claim for as a legitimate business expense and what was not a legitimate business expense.

She also explained that a certain amount of vehicle expenses would be private and most would be business. It was up to each person to decide what the percentage difference would be according to their business. She did say that if we were working and decided to stop and go to the chippy for takeaways, that would be private use of the van.

So do you only put a percentage of your MOT,RFL,Insurance,servicing,brakes and tyres as expenses then?Not the full amount?

 

[ched999uk]

So do you only put a percentage of your MOT,RFL,Insurance,servicing,brakes and tyres as expenses then?Not the full amount?

Technically yes, although you can, I believe use the per mile rate. i.e. reduce the expenses by a fixed rate per mile that hmrc set. You can also use the standard rate for using a room at home when you do your accounts, admin etc. I think it's about £10 a month. A good accountant can save you more than their fees by knowing the rules.

 

[ched999uk]

She did say that if we were working and decided to stop and go to the chippy for takeaways, that would be private use of the van.

Unless of course if you tried selling your services to the chip shop , then it might be marketing activity.