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UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: MNWC on August 09, 2007, 08:50:56 pm

Title: Tax deductions
Post by: MNWC on August 09, 2007, 08:50:56 pm
Hi
Could someone please tell me the percentages available for leasing a van and buying a van.

A plumber friend of mine just got a transit connect (nice van by the way) he said he could minus 70% of the value off his earnings to lower his tax bill

He also said that leasing a van you can claim 100%

Could someone in the know confirm this

Marcus
Title: Re: Tax deductions
Post by: NWH on August 09, 2007, 08:54:02 pm
Complete rubbish,you can claim 25% over something like 2-3 years or 40% in total.We would all be leasing vans if you could claim back 100% in effect it would be free,and gordon brown wouldn`t have that.
Title: Re: Tax deductions
Post by: MNWC on August 09, 2007, 09:03:11 pm
Yeah i thought it sounded too good  :-[
Title: Re: Tax deductions
Post by: Clear Vision on August 09, 2007, 09:11:04 pm
I've  heard that you can claim the full amount when leasing a van!

From loads of different people aswell.

So dont be too cock sure ;)

P.S I dont have a clue :-[
Title: Re: Tax deductions
Post by: NWH on August 09, 2007, 09:17:13 pm
You cannot claim 100% back,if your vat registered you can claim 100% of the vat back is that what he meant.A lot of companys lease bacause it`s only money they would have to give to the taxman so they lease vehicles rather than pay the extra tax,but as far as claiming 100% back i think not speak to you accountant i went to him when i heard that rumor and he laughed.
Title: Re: Tax deductions
Post by: Russell Macdonald on August 09, 2007, 09:17:29 pm
Leasing is full payments you make:

ie. £100per month, £1200 per year.

Buying a van:

ie. Purchase £10,000

Year 1. 40% =£4000
Year 2. 25% of balance = £1500 balance £4500
Year 3 25% of balance = £1125 balance £3375

& so on.

Macc
Title: Re: Tax deductions
Post by: NWH on August 09, 2007, 09:20:42 pm
Well done Mac i knew it was something along them lines.
Title: Re: Tax deductions
Post by: NWH on August 09, 2007, 09:22:15 pm
And also that amount comes off your total earnings,that dosen`t mean you get 40% off your tax bill.
Title: Re: Tax deductions
Post by: MNWC on August 09, 2007, 09:27:02 pm
ok ive got it about buying 

what are the allowances on leasing
Title: Re: Tax deductions
Post by: vwm on August 09, 2007, 09:32:37 pm
by leasing a van it is 100% deductable because you do not not own it someone esle does

if you buy a van then is is spread out over 3-4 years as a % ( the % i am not sure)
taking out a loan then the intrest is tax deductable only.

i recon the best way is to take the 40p per mile allowance and should you have a car as well then the van will be 100% mileage and the car 10-15% of lileage covered in a year. much easier i use the mots as proof of mileage. last years mileage.

a good accountant is worth his weight in gold best £300 iv ever spent
Title: Re: Tax deductions
Post by: AuRavelling79 on August 09, 2007, 09:40:47 pm
Leasing - the payments you make in the year are 100% deductable for that year.

So van lease = £180 per month then for each year you lease the van you can count £180 x 12 = £2160 as a business expense against tax.
Title: Re: Tax deductions
Post by: MNWC on August 09, 2007, 09:56:30 pm
right cheers guys

I think leasing a van is my best option......

or maybe buy one  ::) ::)

im alright at the mo my estate car does the trick but it wont last forever its a diesel 100k .........and its a skoda  :-[ :-[ 
Title: Re: Tax deductions
Post by: billozz on August 09, 2007, 10:20:30 pm
can someone give an example please as to when it would be a good idea to lease and a good idea to buy, i am trying to work out which would suit us better
Title: Re: Tax deductions
Post by: Roy Harding on August 09, 2007, 10:26:16 pm
Leasing is full payments you make:

ie. £100per month, £1200 per year.

Buying a van:

ie. Purchase £10,000

Year 1. 40% =£4000
Year 2. 25% of balance = £1500 balance £4500
Year 3 25% of balance = £1125 balance £3375

& so on.

Macc

Spot on Macc


Roy