[LWC]

i know squeeky does this. so how does it work?

how do you set it back against your buisness tax n all that?

im real thick at this sort of thing, i just wondered if its good to do this or not really? ive got some plans in my head but i will need a new van, i could get the money together for a van, but would like a new one

pro's n con's please

[Alex Wingrove]

i went to vauxhall the other day to look at van

they said i can either claim 25% for 4 years

or 50% 1st year the 20% for next three

seemed cost effective, but i will be sticking through an accountant, they should know what to do

[LWC]

yeh im gonna have to get an accountant sorted soon. things are getting bigger and better. i couldnt do my plans on my own...hmmmm

[macmac]

Alex's comments are correct for an outright purchase.
However, if you LEASE a van, the monthly payments are 100% tax deductable, i.e. 12 x 135= 1620  so you take 1650 off your gross income at the end of the tax year. you do not pay any tax on 1650 of your income.

tony

[LWC]

wow 

so well worth looking at?

[Dean Aspects]

So what size of turnover would leasing be preferable to an out and out purchase
or at what van value when is leasing better than buying outright?
Have i worded that right hope you understand what i am meaning 

Dean

[*foxman]

If your leasing is make sure it's for purchase - if you have to hand the van back and they find any damage/modifications they will charge you, and that can prove very expensive.

[eddie d]

macmac
so all the payments are taxc deductable??

so the van is free ??

is the deposit deductable as well??

[trevor perry]

no the van isnt free it just means you dont pay tax on the money spent on leasing the van.

[cybersye]

I'm also pretty confused about this to but would like to lease a new van next year

If your leasing is make sure it's for purchase - if you have to hand the van back and they find any damage/modifications they will charge you, and that can prove very expensive.

is this correct?, others have advised me better to lease than lease to buy.
I was talking to another window cleaner last week with a van mount in a lease vehicle, he gets new every 5 years. On asking him about modifications and bolting a tank frame, protectakote etc he told me that at the end of the lease its down to him to sell the van on and pay back to the leasing/ finance company whats due. He felt that this arrangement was better as the van would have a good sell on price to another window cleaner with wfp van mount already sold with it if that makes sense?
whats others opinions to this? makes sense to me but then I'm unsure how leasing and lease to buy works so some input would would be appreciated.
Simon

[LWC]

seems like a good thing to me. i do mega mileage, i see some that are limited to 10,000

is it more for say 30,000?

[eddie d]

sorry trev/ surely if as macmac suggests you pay out 1650 which you claim off your gross as a buisness excpence .therefore the van is costing you nothing .

example  turnover 1650
van payments 1650.
tax 0

[twt]

edie the van has cost you 1650 but you would be able to claim tax relief on 1650 which for most would be 363 which is 22% of 1650 this means at the end of the tax year for spending 1650 on leasing a van you would get 363 knocked off your tax bill.

[Davew]

You just pay less tax - nothing is free.

[eddie d]

oic

[macmac]

edie the van has cost you 1650 but you would be able to claim tax relief on 1650 which for most would be 363 which is 22% of 1650 this means at the end of the tax year for spending 1650 on leasing a van you would get 363 knocked off your tax bill.

Correct.

tony

[steve m]

check what deals are about. Some lease companies will charge any where up to 18% plus on the interest. Also check on insurance companies. Some will tell you that they will sort it, but dont let them.

most vans will be on a fixed mileage- normally 20,000, and try to get a lease purchase rather than a straight lease. Also find out about the servicing, as most deals quoted will be for van only. All servicing, tax, insurance and all other bills will be extra.

If you still want to go down that route try Ian Hall at swiss leasing, he's about as straight as salesmen come

      steve

[Alex Wingrove]

also at vauxhall if you are not vat reg they can at the end of the 4 years do a special "deal"

where you sell the van to them for a mark down price i.e 3000 but you pay 5% plus 60quid admin, and the van is yours

but they can sell it on for you and you dont lose out the vat because you never own it but its a good as yours, it wasnt leasing per say, more leasing but with no balloon payment

[steve m]

who wont do that???

[steve m]

why not just go buy a van and get hp. O.K you can only claim I think 40% of the total price of the van but if you lease over foar years, what have you to use for work on the fifthyear, and the money that you save on the lease payments you get back when you sell it