[Captain Scarlet]

thats the beauty of leasing...having the new vehicle but not having to save up or pay out for it in one go....loosing interest in the bank?? its what alot of rich people do, they know better than to spend their hard earn cash all in one go on a vehicle that could be crashed into a wall the next day. Go look at alot of rich peoples number plates in the 06, 07, 08 vehicles, they often have the name of a leasing company at the bottom. And after 3 years you can get rid and turn up in a new van again, Luke

[NWH]

thats the beauty of leasing...having the new vehicle but not having to save up or pay out for it in one go....loosing interest in the bank?? its what alot of rich people do, they know better than to spend their hard earn cash all in one go on a vehicle that could be crashed into a wall the next day. Go look at alot of rich peoples number plates in the 06, 07, 08 vehicles, they often have the name of a leasing company at the bottom. And after 3 years you can get rid and turn up in a new van again, Luke

You have to then resign yourself for paying out all those payments forever don`t forget Luke,if you crash your van there is a thing called insurance aswell you know lol.Rich people do it mainly as a right of for tax not for any other reason,if your wealthy your accountant will tell you to go buy a new car etc otherwise he`ll only have to give it to the taxman.

[Captain Scarlet]

Payments dont bother me.....suppose different things suit different people! Luke

[Captain Scarlet]

Its like a mobile, or sky

[NWH]

The best way seems to be the way Alex suggested,outright purchase and then after 3 years if you want to keep it for another 2 years the overall value won`t have dropped that much.If you then want to lease because you can`t afford to have cash tied up then lease but you don`t have to do it forever,it`s something think about.If your not vat the best and cheapest way is hp or bank loan.

[twt]

if your a sole trader and not vat registered you probably won't benefit from leasing especially since the tax rules have changed and you can spend up to £50,000 a year for the buisness (on vans, equipment etc) and get tax relief on 100% of it, this now makes leasing less appealing.

[L.J.Thorpe]

what about loans
what are the criteria for a loan
ie if you borrow money from a bank to buy a van are the loan repayments tax deductible
i dont have a business account
just a regular current account which i pay all earnings into and  use to pay for anything related to business
how do i show tax man i borrowed money for business purposes
or do i even need to

[NWH]

Reciepts,and loads of them,if you need a business loan you will need a business account.You can get a loan for a van and pay it from your current account monthly,the accountant needs to be aware of it but a good 1 should question the amount of money going out each month.Myself at the moment i outright purchase a van as i hate HP on anything,if you can afford it and you work it out it`s cheaper no interest to pay etc,it does mean your eating into capital but i`d rather do it that way at the moment just my personal choice.

[jaykie]

Most of the rich buy them on credit as you get o% leave the money in bank to make payments which is earning interest and pay in full at end of term or sell,
youll find most the leasing companys wont lease to you if your making holes in floor.

Chris

[NWH]

Most of the rich buy them on credit as you get o% leave the money in bank to make payments which is earning interest and pay in full at end of term or sell,
youll find most the leasing companys wont lease to you if your making holes in floor.

Chris

Indeed they won`t as i said.

[L.J.Thorpe]

what about loans
what are the criteria for a loan
ie if you borrow money from a bank to buy a van are the loan repayments tax deductible
i dont have a business account
just a regular current account which i pay all earnings into and  use to pay for anything related to business
how do i show tax man i borrowed money for business purposes
or do i even need to

That’s why you should keep separate accounts; if you are ever looked at by the tax man it could be costly.

It doesn’t have to be labelled a business loan any loan used for business is ok and you will probably get a better rate. Only the interest on the loan is tax deductible not the principal.

 

ewan read the post again :
it IS a seperate account
it just ISNT a business account
i pay all income from business into it
i pay for all business related items using it
my bank manager knows all about it
he has no problem with it
so i dont pay business banking fees
i refer to it as the business account simply because its the account i use for business
but it is an ordinary current account
THATS why i was asking about loans for business

[NWH]

what about loans
what are the criteria for a loan
ie if you borrow money from a bank to buy a van are the loan repayments tax deductible
i dont have a business account
just a regular current account which i pay all earnings into and  use to pay for anything related to business
how do i show tax man i borrowed money for business purposes
or do i even need to

That’s why you should keep separate accounts; if you are ever looked at by the tax man it could be costly.

It doesn’t have to be labelled a business loan any loan used for business is ok and you will probably get a better rate. Only the interest on the loan is tax deductible not the principal.

 

ewan read the post again :
it IS a seperate account
it just ISNT a business account
i pay all income from business into it
i pay for all business related items using it
my bank manager knows all about it
he has no problem with it
so i dont pay business banking fees
i refer to it as the business account simply because its the account i use for business
but it is an ordinary current account
THATS why i was asking about loans for business

You obviously don`t use it much or like a business account otherwise your manager wouldn`t allow it,i pay 100 odd cheques on average in a month i don`t think that looks like a current account do you.

[scud]

what about loans
what are the criteria for a loan
ie if you borrow money from a bank to buy a van are the loan repayments tax deductible
i dont have a business account
just a regular current account which i pay all earnings into and  use to pay for anything related to business
how do i show tax man i borrowed money for business purposes
or do i even need to

That’s why you should keep separate accounts; if you are ever looked at by the tax man it could be costly.

It doesn’t have to be labelled a business loan any loan used for business is ok and you will probably get a better rate. Only the interest on the loan is tax deductible not the principal.

 

ewan read the post again :
it IS a seperate account
it just ISNT a business account
i pay all income from business into it
i pay for all business related items using it
my bank manager knows all about it
he has no problem with it
so i dont pay business banking fees
i refer to it as the business account simply because its the account i use for business
but it is an ordinary current account
THATS why i was asking about loans for business

You obviously don`t use it much or like a business account otherwise your manager wouldn`t allow it,i pay 100 odd cheques on average in a month i don`t think that looks like a current account do you.

  The bank cannot stop yu from using an ordinary account like that, they also cannot force you to have a business account.

  Aren't all payments on a lease tax deductable? All mine are deducted against tax.

[NWH]

Of course they can if they deem it to be being used for business.

[L.J.Thorpe]

nwh
over last 5 wks 58 chqs
this is a lot more than six months ago since i stopped collecting
rest is cash either collected at job or dropped off at my house (quite a lot of em do this )
 marc (scud) says that a bank cant force you to have a business account
thats what my manager told me
of course he could be wrong,i dont know i just took his advice
i used to work with a freelance graphic designer
he had been in business for over 20 years and never had a business account,just a seperate current account