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Buying a van on finance

(6 Posts)
nicegirl73 Mon 08-Aug-16 07:31:24

Hi, I've outgrown my truck and need to get a van for my business.
Hoping you can help me with some information please?
I'm a sole trader, not vat registered, do I still get to deduct 100% first year , 80% seconds year etc ?
And what if my bank gave me a loan instead?
I don't have an accountant although they are also deductible I hear 👍

Thank you all!

Tinklypoo Mon 08-Aug-16 07:34:47

Message withdrawn at poster's request.

nicegirl73 Mon 08-Aug-16 08:28:49

Wow really?!

Tinklypoo Mon 08-Aug-16 08:58:42

Message withdrawn at poster's request.

Badbadbunny Mon 08-Aug-16 11:01:07

If you're not VAT registered, you claim the full cost as a deduction against your profits - you can't claim back the VAT, but YOU CAN claim tax relief on the VAT as indeed it does increase your cost.

Re the van, you can claim the business proportion, so if you use it 75% for business journeys and 25% private, you deduct 75% of its costs against your profits.

As for 100% capital allowances in the year of purchase, yes, still available, but restricted to business use, so if it's 75% business use, you can claim 75% (i.e. 75% of the 100% claim) of its cost against your profits. But that's it, once you've claimed it against profits, you can't keep claiming it year after year. You certainly can't claim 80% in the second year if you've already claimed 100% in the first!

Tinklypoo Mon 08-Aug-16 11:19:36

Message withdrawn at poster's request.

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