Claiming cost back on new van. Please help.

Discussion in 'Managing Your Business' started by Solarpanelcleanington, Jul 26, 2016.

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  1. Solarpanelcleanington

    Solarpanelcleanington Forum Addict
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    Hi, just bought a transit (financed).
    From what I've read, I can claim the cost of the van via AIA as a capital expense and then the interest annually afterwards. Is this true?

    Also, do I still claim the 45p per mile? Or is it switched to running costs, mot tax repair etc.....?

    I'm confused.

    Thanks
    Ole.
     
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  2. Clisty1989

    Clisty1989 Forum Addict
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    If you only use it for work as far as in aware ALL expenses are tax deductable, but i may be wrong, just going off what my mate got told from there business adviser
     
  3. spruce

    spruce Grand Master
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    You can only claim one or the other.

    If you choose to claim business mileage, then you have to stick with that for as long as you have the van. You can only claim the mileage allowance for your business miles and would need to show that you have not included any private mileage in the figures. Ie 10k traveled per years, 9k claimed, 1k not claimed as its private.
    All running costs, fuel, insurance, repairs, MOT, interest on loan, depreciation, etc are not claimable as they are covered in your mileage allowance. (Mileage allowance also reduces once you reach a certain mileage - I don't know the exact figures tbh).

    If you choose the capital expenses route then you have the choice of writing the van down in value annually, or write it all off the first year. (It used to be 40% in the first year and 20% each year after that on the reducing value, but it has been revised since then - 18% on annual write down is what it was tax year 2014-2015.) Once the van gets down to a certain value you van write it off totally. Interest is an expense so claimed yearly.

    If you write the van off tax wise then what ever you sell it for needs to be declared as a 'profit' for tax purposes.
     
  4. Solarpanelcleanington

    Solarpanelcleanington Forum Addict
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    Thank you Spruce. I've done my own self assessments for years and always claimed the mileage (11p a mile for pushbike too!) but never had to consider capital expenditure. Until now. Might be time for an accountant.
    Cheers amigo.
     
  5. daveyboy

    daveyboy Legend
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    Just be sure you know which way you want to do it
    Once you start doing it 1 way as Spruce said you have to continue with that way for as long as you have the vehicle
     
  6. Solarpanelcleanington

    Solarpanelcleanington Forum Addict
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    I'm lazy and hate paperwork, so will probably stick to mileage!
     
  7. daveyboy

    daveyboy Legend
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    I just keep receipts
    In fact i don't do that anymore as i use my business credit card for all expenses as i have it set up to pay off in full each month by direct debit and incur no interest charges then only need to print 12 monthly statements when it comes to tax return..a lot easier than faffing with receipts and well worth 32 quid a year
     
  8. Green Pro Clean Ltd

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    It is worth contacting a local small business accountant. They will all give an initial free 30 minutes meeting to establish what your needs are and answer any questions you have.
    When I was sole trader it cost us £150 per year and he did all our end of year returns for us and filed them.
     
  9. Solarpanelcleanington

    Solarpanelcleanington Forum Addict
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    Oddly enough, I quoted a solar panel job on the roof of a large accountancy firm last week. The MD sat me down in the board room and explained how they could make us lots more money, grow the business et cetera.
    I guess as a business goes, you realise you can't do everything yourself.
     
  10. Alien Human

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    I'd second either sitting down with an accountant (for the first free 30mins/hour) or just getting one.

    I bought a new 64 reg 18months ago and the accountant made it clear that the cost would be divided up between last tax year, the next one......and possibly the one after that. (For example 60% 30% 10%)

    Highly recommend just getting one though - loads of decent, local accountants out there that are well worth the money spent.
     
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