The interest on the finance will be tax deductable too
hi matt, my understanding is that you can you aia allowance and write all of teh van off as one expenditure - here is the link that explains it better than me http://www.hmrc.gov.uk/manuals/camanual/ca23084.htm
You can offset the whole purchase price in year one, but only if it is used exclusively for your work. At least that is my understanding nd I have no idea how rigid that might be if push came to shove. E.g. Could you drop a child at school on way to first job if it is entails a detour?
Quote from: KS Cleaning on April 15, 2013, 02:51:30 pmThe interest on the finance will be tax deductable tooNot according to the HMRC. Spoke to them an hour, interest is not tax deductible.
Funny that, I took out a bank loan for a van and my accountant wanted details of the interest on the repayments, I assumed it was for tax purposes...maybe he was just being nosy
Quote from: 8weekly on April 15, 2013, 03:03:00 pmYou can offset the whole purchase price in year one, but only if it is used exclusively for your work. At least that is my understanding nd I have no idea how rigid that might be if push came to shove. E.g. Could you drop a child at school on way to first job if it is entails a detour?Only if you buy it outright. if its over a number of years you cannot.
Off topic I know but..when buying a new van consider the VAT that is charged not only on the purchase price, but also on monthly repayments. If you are not VAT registered this can add a considerable amount to your total outlay which cannot be reclaimed.
If you buy a vehicle with finance, lets say spread over 4 years, you cannot put the whole cost of the vehicle against any single given tax years liability. You can only put what you have paid out in that year against your tax liability. Which'll be a quarter of the total cost if you spread the load over 4 years. You cannot include any interest paid on the loan.If however you buy the vehicle outright in one hit, the full cost of vehicle paid off straight away you wont be paying interest anyway but you can put the full cost of the vehicle against any given tax year I believe, although it'll probably be better to spread the cost over a number of tax years to fully appreciate the potential tax savings.
Quote from: rg1 on April 15, 2013, 03:49:56 pmOff topic I know but..when buying a new van consider the VAT that is charged not only on the purchase price, but also on monthly repayments. If you are not VAT registered this can add a considerable amount to your total outlay which cannot be reclaimed. Since when?