Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Avo on November 26, 2011, 06:00:48 pm

Title: new van on business expenses
Post by: Avo on November 26, 2011, 06:00:48 pm

At the minute im driving a vw caddy 05 but thinking of upgrading to its bigger brother transporter for more room.. Im not good in the field of tax and expenses so how much can i claim for and how do i go about it???

In simple terms as i am slightly thick   :)   ( Im not VAT reg )

Title: Re: new van on business expenses
Post by: Pope vader on November 26, 2011, 06:19:49 pm

think it depends are you leasing or buying

Title: Re: new van on business expenses
Post by: Avo on November 26, 2011, 06:32:51 pm

Be buying it me thinks...

Title: Re: new van on business expenses
Post by: Blue Frog Systems on November 26, 2011, 09:26:09 pm

I believe that £2k and under you can claim in one tax year - above that then it has to be spread out over x amount of years, but check with your accountant

Title: Re: new van on business expenses
Post by: Steve CM on November 26, 2011, 09:30:48 pm

think its actually changed now though where buy if you buy you can claim all the purchase price in year 1. Check that out with your accountant though

Title: Re: new van on business expenses
Post by: Richard Neal on November 26, 2011, 09:41:06 pm

Definately what accountants are for mate

Title: Re: new van on business expenses
Post by: Ian101 on November 27, 2011, 09:46:11 am

Quote from: Steve CM on November 26, 2011, 09:30:48 pm

think its actually changed now though where buy if you buy you can claim all the purchase price in year 1. Check that out with your accountant though

Pretty sure Im correct in saying this .......... the oppertunity to write it off in 1 year has been closed, i know cos just done my 1st years (2010 - 2011) accounts and we managed to get the van written down 100% BUT the taxman now stopped allowing that.

Also applied to system as well

Title: Re: new van on business expenses
Post by: Avo on November 27, 2011, 10:50:13 am

So what's that mean for me now then???

Title: Re: new van on business expenses
Post by: Ian101 on November 27, 2011, 11:03:36 am

Quote from: Avo on November 27, 2011, 10:50:13 am

So what's that mean for me now then???

now have to write it down over say 5 years

EG £10000 purchase price

Year1 = £2000 (20%)  allowable against tax bill leaves van at £8000 on books
Year2 = £1600 against tax bill ... van now on books at £6400
Year 3 = £1280 against tax ... van now on books at £5120
Year 4 = £1024 against tax ... van now on books at £4096
Year 5 = £820 against tax ... van now on books at £3276

think thats how it works

VAT element you loose as not VAT registered

or you can lease a new van

EG like this one
http://www.nationwidevehiclecontracts.co.uk/Peugeot_Partner-L1_16_HDi_90_850_S-30388.htm

£172 allowable against tax per month or £2064 per year so if paying tax at 20% £2064  in effect becomes £1651


but u need accountant to be sure cos I just clean windows  ;)

Title: Re: new van on business expenses
Post by: Ian101 on November 27, 2011, 11:05:22 am

as JP Getty once said if it appreciates buy it if it depreciates lease it

lease is cheapest way to get into a new van

the example I shown is prob the one I will be getting early next year

Title: Re: new van on business expenses
Post by: Avo on November 27, 2011, 11:30:32 am

Ok Ian thanks alot seems to make perfect sense really.

Title: Re: new van on business expenses
Post by: Steve CM on November 27, 2011, 12:28:06 pm

I'm going on what my accountant told me about 6 months ago.

Title: Re: new van on business expenses
Post by: C.C.S. on November 27, 2011, 07:12:36 pm

my accountant write off my van in one go,5k for tax year 2009-2010