[maxcarpets]

I agree. I have never brought a new van or anything for that matter on finance, it does'nt make sense to me. If its paid for it doesnt matter if you have a bit of a quite time.

[Matt Read]

I've always seen the capital allowances differently,i may be wrong but buying a new van on finance...yes you have to earn it to pay for it but if its 25 % of the vaue off your tax bill the first year 25% off the remainder the following year so etc then are you paying for it ? One plus is you have a reliable new van to impress the customers with you can do as much work as you want without worrying about giving it to the tax man and when the allowance has dwindled away after about year 4 you can do it again. No mot's to worry about ....minimal breakdowns etc ...i look at machinery the same way why not get the best you can to work with and make life easier rather than give it to the tax man ?...maybe i'm missing a point here ?

[craigp]

on finance may well be different as it could, i guess, be veiwed as any other ongoing expense, ie. your £200 a month (lets say) would be non tax deductable.

or to put in into a yearly tax bill reduction on finance for a van=

£200 per month=
£2,400 a year in van repayments

=

£2,400 of your earnings not taxed = £420 off your tax bill

[Matt Read]

The £200 per month would be like paying your next tax bill monthly  but having the use of new van/equipment . i'm probably wrong maybe there is something i haven't thought of ?

[craigp]

Matt,

the 10k spent on a van does not come off your tax bill, it means that 10k you earn will be not taxed.

25% of the value of 10k (your van) goes in each year as an exspense so the 25% which is 2.5k will be deducted off your taxable income.

so if you have earned £20k in the year you can take £2.5k off that, and present £17.5k to the tax man to tax.

[craigp]

good job ive not had a drink, cus that would have never made sense then, LOL!

[steve cardy]

Regarding capital allowances i think they work a bit more like this.
If you buy a van new for say £10,000, in year 1 you receive 40% tax allowance.
so thats £4000 of your net profit. In year 2 you get 25% of the balance in this case £1,500 off that years net profit. In year 3 you get 25% off the new balance which is £1,125 off your third years net profit.So to get your full allowance would take approx 8 plus years. This is why some people perfer leasing as you receive full tax releif as you go on in that year.
If you buy a van on hp you get the depriation as a capital allowance and the interest you pay on the loan is tax deductable.

[Damian]

Im sure its only 40% of your payments and not the full amount. I do what i do and leave my accountant to do what i pay him for If he says buy another van then i do. simple. I do know its less for estate cars as these are not commercial vehicles.

Damian.

[craigp]

i've not heard of 40% for first year before.

but yes 25% will obviously be off new balance so reducing each year.

[maxcarpets]

Sorry Guys, Cash only No finance wins everytime for me

Justin

[maxcarpets]

By the way, Neil we must meet for that beer before Xmas!

Justin

[Damian]

Craigp-no i didnt mean 40% for first year but some guys are saying you claim 100% of what you pay each month on finance and i'm sure you can only claim 40%?-for commercial vehicles. Less for estate vehicles etc(was going to buy them-for their sakes) I am really not au fair with taxes as like i say-i pay my man to sort it and let me do what i do

Damian.

[craigp]

i was refering to steves post,

and yes you are correct steve i just looked it up on inland rev website, it is a new thing, from 2004 you can claim 40% for first year (small and medium buisness)

this is a good thing for us, i ll be looking into it further as ive bought a new van myself this year. (only 3.5k van though)

Damiam, im not sure myself on the fincance thing, ive not bought that way so not had to look into how you deal with that for tax.

i know we all meant to take out a % for 'personal use' but if you got a car too then vans 100% work use. lol.

[Damian]

Dunno Craig-i register the bike an all as i can do estimates a lot quicker with it-wizz thro traffic and sort everything out! lol. The new ZX10 is on order

Damian.

[craigp]

zx10 bit slow ; - )

my last bike gsxr 600 k4, used to take it over mid wales, brillent roads!

as you know the handling on todays bikes mind blowing.

[Damian]

Craig-dear dear 600-mmm : I used to have a small bike when younger and raced but now i prefer to use the throttle properly I love Honda quality but do like the new kwak and am gonna back down and try one-besides me and mates have gotta big discount on 3 new orders Maybees we will get your way at some point?

Damian.

[Neil Grainger]

all bikers should be driven off the road, damp nutters

[craigp]

todays 600 's are quicker than yesterdays gsxr 1100.

my mate got a fireblade and could never lose me.

[Prestige1]

I have gone into mobile spotting! any one with a stain call me! upto 10miles takes 1 day to get there between 10 and 40miles  upto 1 weeks travel, I think it sould catch on. take a look at my new machine! beets that honda above! just look at the storage! Regards Phil

[Damian]

Neil-nice attitude! Craig-yes youre right new bikes are a lot quicker and certainly better at handling-(thats why im waiting for new one-just love getting a new bike!). Im quite impressed with the lack of p***y strip on front tyre fella-looks like you use them to their full ability-just how it should be

Damian