The last person that done my books always said to me no there's no point in changing your vehicle you won't save much for doing it so I kept leaving it,I got someone else who advised me to change my vehicle and the next year I got nearly 5k back from the tax man. If you don't spend money on something for your businesss you'll only pay more tax.
That's not really how tax works........
Some people seem to think whatever you buy it comes off your tax bill. "If I spend £1000 then that will be £1000 less tax to pay"
In reality your spending £1000 to save £290 (unless your earning over £40k then it's slightly more) off your tax bill. Your still out of pocket by £710.
It just seems great the first year of your big purchase because You can use up your capital allowance and nearly wipe out your tax bill, but the following year you will be then be hit by a big tax bill where you have to pay on account.
If 2 companies earns £50k but one company spends £20k on a new vehicle the company who is still running there old van will have much higher profit, but just pay more tax. It still works out as more money in their hand at the end of the day though.
You just have to take into consideration if your older work vehicle is costing you days off work if it's unreliable and in the garage being repaired, then it's a good idea like dazmond to take the plunge.
Don't just buy a new vehicle every other year to keep your tax down. It's a false economy.
