[Pete Thompson]

Our vans cost £15K each + VAT.  All new based on no deposit and 0% APR.  We got the VAT Back immediately as a lump sum but we pay £500 per month for them so therefore

£6000.00 Per Annum
Fuel £2400 @ £200 per month for 150 Litres
Insurance £1000
£600 for Servicing and RFL

Thats £10K.  As I said initially I am not interested in what the vans are worth at the end of 3 years thats just a bonus back into company coffers.  I calculate that as costing me for 255 working days around £40 per day or £5 per hour.  So the van alone on a job for a week would cost £200 + Parking (If Applicable) + £0.45p per mile.  Clearly window cleaners can't charge mileage but I do

Sorry to go against the grain Kev Martin, (and of course whatever system you choose is right for you), but what you describe is an inaccurate way to calculate costs.

‘Not interested in what the vans are worth at the end of 3 years’ - this I don’t get.

A 3-year old van is not worth zero money. Surely this figure is critical when calculating how much a van has cost you to run?

Plus, the mileage charge of 45p per mile (HMRC rate) is only used when you don’t claim anything else for that vehicle. It is supposed to cover everything- ie depreciation, fuel, road tax, repairs etc. You can’t claim 45p per mile AND all the costs of the van. Fuel itself is only claimed at 15p per mile.

So for example, you can either claim:
- Fuel (15p per mile)
- Road tax
- Repairs
- Depreciation
- Finance costs (interest)

OR

- 45p per mile.

Maybe I’ve got the wrong end of the stick, but no way does my van (Toyota Proace with a 700 litre Ionics system in, brand new in Jan 2018) cost £10k to run. More like £5k for 8,000 miles.