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Buying a used van - VAT
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Mcsandlaly
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If you go on the Autotrader site you can search for vans without VAT on there. All the best not easy to find as those selling them put the price up as they know what you are after and cant find!!
scottish cleaning service
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I was in my VW Commercial Showroom last week picking up a spare part. It was dead, but what I did notice was the amount of nearly new vans parked outside. There must have been over 20 dark blue and black, 18 plate Transporters parked outside. Don't know how they are going to shift them and nor do they. As for a good second hand van, I would try an get an ex British Gas one at a main auction.
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The non VAT registered owner, if he had half a financial brain, would sell his £5k + VAT van for £5900 with no VAT. Unfortunately there's no easy way around this.
Jjs window cleaning service
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I'm in the same boat...I'm finding all Van's that say that vat is included have a higher price to compensate for vat. You cant bloody win
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It PI$$E$ me off too!![emoji36][emoji36]
Try Anchor van.
I think there in Reading .
Vat free van alegitly!!!
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Try Anchor van.
I think there in Reading .
Vat free van alegitly!!!
Sent using the Window Cleaning Forums mobile app
Also forgot to add I noticed in the paper yesterday.
Vauxhall are doing 0% Apr for 6 years on Combo and vivaro vans.
Vivaro.
You need to pay 20 % deposit.
Then £199 per month x 6yrs!!!
Combo.
20% deposit.
£169 per month x 6yrs
Could be worth a look.[emoji3][emoji106]
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scottish cleaning service
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When I was in the VW garage last week, they were telling me I could lease a new crafter for £259 a month. I think things will get much worse because soon they will not be able to give vans away. WE are heading into a big recession now and will be good for buying a van next year.
You'll pay VAT on all vehicles. If a vehicle is advertised without VAT the VAT is already included in the price.
If you earn over the earnings limit of £11,850 per year you'll be paying for the van out of your gross income (rather than your net income) so you'll effectively not be paying the VAT anyway... I'm assuming here that the van is solely for business use & not for personal use & that you're not VAt registered.
If you earn over the earnings limit of £11,850 per year you'll be paying for the van out of your gross income (rather than your net income) so you'll effectively not be paying the VAT anyway... I'm assuming here that the van is solely for business use & not for personal use & that you're not VAt registered.
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Mcsandlaly
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- Peak District Bakewell Area
I bought a van last year, no tax to pay bonus................bite the bullet and get a new or newish one and then you can have a few years no problems, earn a bit and tuck some away for the next van or retirement...........unless you have six kids and a mortgage then you are stuffed. Fortunately mine have grown up and nearly no mortgage so happy...........all the best with the search.
Green Pro Clean Ltd
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New van £15K plus vat £18K - over 5 years VAT at £3k = £600 per year. That's £50 per month or to put it into our working month of 20 days £2.50 per day.
As @Cookie says if you are over £11'800 it's not affecting your personal monies anyhow, it's set off against profit for your end of year.
This is how VAT is killing the English economy. (this will start a riot ?)
VAT is seen by most as a 'limit' a 'threshold' something not be be touched as 'I can't be bothered with all the paperwork and i'd lose my customers cause they won't pay it' -- Last statement of losing customers totally inaccurate. They will stay rather than try to find a new reliable window cleaner.
We are one of the highest VAT thresholds in the world at £85k however a one man band or a one man band + helper could manage quite well on £85K before needing to go into VAT registration.
If you are any larger that a two man operation full time and not going VAT registered then your work is wither well underpriced or you simply aren't declaring your earnings accurately.
Consider this, an individual can earn up to £11'500 tax free for the year before needing to pay Income Tax. Now let's give him another few quid (but we want our slice so) say £20k prior to VAT registration.
If on that £8'500 earnings he has to pay tax (which he wont anyway due to offset against costs) he then effectively has himself a job, which is all any one man band actually has in reality at the end of the day, a job, they can call it what they like but reality is they simply 'own a job'. This of course has benefits of security, better pay etc but it's not a company. just a job.
Now the shocker: Lower the VAT threshold to £20K as simple as that £20K threshold across the board, no schemes for the multi nationals no incentives for the one man bands, just a base threshold of £20K that's it. Now here's the key part... everyone pays it. As simple as that, everyone from Bob with his bucket to Mark the boss of Facebook and Starbucks etc. Everyone pays their 20% above and beyond £20K.
This has a multi level effect:
1: Everyone is used to having to pay VAT because everyone does pay VAT with this system so it's just a fact of life.
2: Only those 'keeping their hand in' as a retirement number perhaps will stay below VAT and it wont be be an issue as all they want to do is earn a few quid to perhaps top up a pension for example.
3: National services improve, there is more money in the coffers to fund health care, education, infrastructure and so on.
4: If the playing field is leveled then the VAT Rate could actually decrease several percent and still see the vast improvements mentioned above.
Yeah sure, a few 'what ifs' but the possibilities are there. We aren't too far away from becoming a cashless society so records wont be as easy to duck in the years ahead anyhow.
Don't bother to reply with 'the bourgeois fat cats in power will just get fatter and nothing will change' type quips, they're boring and to be frank of no help wo a practical discussion whatsoever.
It's just an example of how well the system could work, not and example of how it does work.
At £85k you need to register for VAT that's a 20% hit off the bat (not discussing flat rates here) you need to step up to £102K to negate the hit that will put on our business. What's that in real terms? You will need to increase you daily take by £70 per day (based on the 20 day month)
A van doing £85K per year is taking £354 per day (several know these numbers are achievable) WITH THE RIGHT AMOUNT OF GRAFT (not running some part time job starting at 9am and done by 2pm 4 days a week) So if you're having two vans out there by the time you paid a wage to the staff, the cost of the vans and insurances ect it's really not that profitable.
To summarise, by the time you're adding in a second van you HAVE to be considering VAT registration otherwise it's really not that profitable to run two vans at all, one van with two men on the other hand is a different matter and in my opinion the only way to run a round to reasonable profit without VAT registration at current levels.
Now back to the matter at hand, bet you wish you'd just bought the van and swallowed the VAT now don't you? ?
Time for my hearing test then got to get shopping for the next van myself ? Won't be letting the VAT affect my choices however.
As @Cookie says if you are over £11'800 it's not affecting your personal monies anyhow, it's set off against profit for your end of year.
This is how VAT is killing the English economy. (this will start a riot ?)
VAT is seen by most as a 'limit' a 'threshold' something not be be touched as 'I can't be bothered with all the paperwork and i'd lose my customers cause they won't pay it' -- Last statement of losing customers totally inaccurate. They will stay rather than try to find a new reliable window cleaner.
We are one of the highest VAT thresholds in the world at £85k however a one man band or a one man band + helper could manage quite well on £85K before needing to go into VAT registration.
If you are any larger that a two man operation full time and not going VAT registered then your work is wither well underpriced or you simply aren't declaring your earnings accurately.
Consider this, an individual can earn up to £11'500 tax free for the year before needing to pay Income Tax. Now let's give him another few quid (but we want our slice so) say £20k prior to VAT registration.
If on that £8'500 earnings he has to pay tax (which he wont anyway due to offset against costs) he then effectively has himself a job, which is all any one man band actually has in reality at the end of the day, a job, they can call it what they like but reality is they simply 'own a job'. This of course has benefits of security, better pay etc but it's not a company. just a job.
Now the shocker: Lower the VAT threshold to £20K as simple as that £20K threshold across the board, no schemes for the multi nationals no incentives for the one man bands, just a base threshold of £20K that's it. Now here's the key part... everyone pays it. As simple as that, everyone from Bob with his bucket to Mark the boss of Facebook and Starbucks etc. Everyone pays their 20% above and beyond £20K.
This has a multi level effect:
1: Everyone is used to having to pay VAT because everyone does pay VAT with this system so it's just a fact of life.
2: Only those 'keeping their hand in' as a retirement number perhaps will stay below VAT and it wont be be an issue as all they want to do is earn a few quid to perhaps top up a pension for example.
3: National services improve, there is more money in the coffers to fund health care, education, infrastructure and so on.
4: If the playing field is leveled then the VAT Rate could actually decrease several percent and still see the vast improvements mentioned above.
Yeah sure, a few 'what ifs' but the possibilities are there. We aren't too far away from becoming a cashless society so records wont be as easy to duck in the years ahead anyhow.
Don't bother to reply with 'the bourgeois fat cats in power will just get fatter and nothing will change' type quips, they're boring and to be frank of no help wo a practical discussion whatsoever.
It's just an example of how well the system could work, not and example of how it does work.
At £85k you need to register for VAT that's a 20% hit off the bat (not discussing flat rates here) you need to step up to £102K to negate the hit that will put on our business. What's that in real terms? You will need to increase you daily take by £70 per day (based on the 20 day month)
A van doing £85K per year is taking £354 per day (several know these numbers are achievable) WITH THE RIGHT AMOUNT OF GRAFT (not running some part time job starting at 9am and done by 2pm 4 days a week) So if you're having two vans out there by the time you paid a wage to the staff, the cost of the vans and insurances ect it's really not that profitable.
To summarise, by the time you're adding in a second van you HAVE to be considering VAT registration otherwise it's really not that profitable to run two vans at all, one van with two men on the other hand is a different matter and in my opinion the only way to run a round to reasonable profit without VAT registration at current levels.
Now back to the matter at hand, bet you wish you'd just bought the van and swallowed the VAT now don't you? ?
Time for my hearing test then got to get shopping for the next van myself ? Won't be letting the VAT affect my choices however.
scottish cleaning service
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- Paisley
I think if they lowered the Vat threshold to £20k then everyone paying vat would go limited. Limited company is the safest way to have a company. Just need to look at Carillion who walked away from billions in debt, no one charged yet.
Green Pro Clean Ltd
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Carrillion need to be charged and incarcerated.
Sure being Ltd is a bit more paperwork but why wouldn't you because as you say @scottish cleaning service it offers YOU that bot more protection?
scottish cleaning service
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Hera's an early Christmas present Darren if you like reading. Buy a book called "the money game" by Adam Smith, not his real name but quite effective. Best book on business I have ever read and I have read a lot.
Green Pro Clean Ltd
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Here's the present returned. Either of Lord Sugars biographies. Both hilariously funny bit jam packed with sound basic principles that apply to every aspect of every business.
scottish cleaning service
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Cheers, read all Trumps books and one says that he was bankrupt because of the housing collapse, all his money was in property. Will buy Lord Sugars one although I don't really like him because he seems arrogant but that may be for TV.
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Mcsandlaly
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- Location
- Peak District Bakewell Area
So van which one!!!! You lads been drinking already?
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