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.
Since when?
You can't reclaim VAT if you're not VAT registered.
You never pay VAT twice.
You only ever pay VAT on a van, (car as well) once. If you take out an ordinary Hire Purchase finance deal on a new van, you pay the basic price + VAT and any other taxes due.
The finance deal is then worked out on the total price paid (including VAT), less the deposit. Interest per annum is then added to the amount financed and the time period becomes the monthly instalment.
VAT is payable on all new vehicles. If the new owner is VAT registered he pays the full price including VAT and claims the VAT back at the end of the quarter. When he sells it the van is classed as VAT qualifying. This means the second owner has to pay the VAT unless he is also VAT registered. The dealer makes adjustment for the value of the trade-in depending on its VAT status. (A VAT qualifying van will be traded in at a price that excludes VAT so he is sure to make his profit on resale and not overprice the van for the next person who buys it that may not be VAT registered.
So an example. £8000.00 + VAT £1600.00 = £9600.00. You put down 25% deposit of £2400.00 = £7200.00 to be financed. £7200.00 x 5% flat pa interest over 3 years = £1080.00 interest. Total amount to pay over the period = £8280.00 divided by 36 months = £230.00 per month.
If you took out a leasing deal then the monthly rentals are calculated on the basic price and you get a monthly rental amount + VAT. In this case you will pay VAT over the period and not up front. If you took out a finance lease that didn't have a final balloon payment, then you would pay more VAT than had you financed. This is because you paid VAT on the interest and other leasing costs which you wouldn't have with HP. However, the VAT is charged from the lower base so there isn't that much difference.
So yes, you need to be a aware of the value of your purchase when buying a VAT qualifying van. As non VAT registered sole traders we could get caught out by a crafty salesman who disguises his OTR (on the road) price in a 'cheap' weekly instalment figure. In most cases the dealer will be focusing his sales efforts on a VAT registered sale. At 20% added VAT the van could easily be overpriced for a non VAT registered buyer, but still within price acceptance for a VAT registered company.