Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: MNWC on February 05, 2008, 05:17:14 pm
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Hi
If i wanted to get my tax down abit would buying a van do the trick
These are all examples
Earnings gross = 30,000
Van = 3,000
Other expenses = 3,000
Net Income = 24,000
Marcus....
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No you can only claim 25% of the price on the first year, so 25% of 3000 is 750.
So
Earnings gross = 30,000
Van = 750 (first year)
Other expenses = 3,000
Net Income = 26,250
The next year you can claim 25% of the remaining value 3000 minus 750 = 2250
25% of 2250 is 562.5 for the next year.
I'd look at leasing, you can claim 100% of what you spend out.
Simon.
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Why does everyone think you can claim 100% back for vans,it`s wrong.You might be able to claim 100% of the tax but you still have to pay for the van out of your own pocket,you are going to end up paying for it it`s how much tax you claim on it is what you`ll get off,don`t start thinking the taxman is going to give you a van.
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Not quite - you write your van value down over the years at 25% of the reducing balance.
So buy in 2007/8 at £3000 and you can write off £750 in that year.
In 2008/2009 it's 25% of £2250 etc.
When you sell your van you adjust for that year so if you sold it in year 2008/9 for £2500 you've made a profit (income) of £250. Sell it the same year for £2000 and you've lost (expenditure) £250.
If you lease your van then the whole lease costs for any year are expenditure, but talk to an accountant.
Modified to add: Sorry - Sherwood's quicker on the draw! ;D
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Hi
First year's write down is 40% then 25% each year after that on the new written down amount. This first year allowance of 40% applies whether the van is purchased new or second hand by yourself.
Spruce
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actually first year is now 50% on capital items
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100% after april.
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Why does everyone think you can claim 100% back for vans,it`s wrong.You might be able to claim 100% of the tax but you still have to pay for the van out of your own pocket,you are going to end up paying for it it`s how much tax you claim on it is what you`ll get off,don`t start thinking the taxman is going to give you a van.
butttttttt, yes we pay out of out own pocket, but shall we have nicer things or give the tax man more money
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100% after april.
??? ??? ??? ??? is that true....i missed that one is that for year 08 to 09 and are there any catches
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For 2 years according to my acountant at 4.30 today,there offering 0% at the moment on vans if you purchase before 31st march which means you can claim the 50%,if you leave it until april you will come in the 100% bracket.The catch is 0% are they offering 0% after march probobly not,therefore you will have to pay there interest rate which will eat up the other 50%,i was advised to get one before as it`s 0% and wouldn`t really end up saving.If there is a recesssion and they can`t shift vans and they keep offering 0% that`s when you`ll be quids in as it will be after march when the 100% comes in,the thing is this could be for sometime and they might not be offering the 0%.You have to gamble of whether you think they`ll have a job selling vans in general and the low % interest rates will be offered,the safest way is to buy at 0%.
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For 2 years according to my acountant at 4.30 today,there offering 0% at the moment on vans if you purchase before 31st march which means you can claim the 50%,if you leave it until april you will come in the 100% bracket.The catch is 0% are they offering 0% after march probobly not,therefore you will have to pay there interest rate which will eat up the other 50%,i was advised to get one before as it`s 0% and wouldn`t really end up saving.If there is a recesssion and they can`t shift vans and they keep offering 0% that`s when you`ll be quids in as it will be after march when the 100% comes in,the thing is this could be for sometime and they might not be offering the 0%.You have to gamble of whether you think they`ll have a job selling vans in general and the low % interest rates will be offered,the safest way is to buy at 0%.
And i am 100% confused or is it 50% ??? ???
Dean
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For 2 years according to my acountant at 4.30 today,there offering 0% at the moment on vans if you purchase before 31st march which means you can claim the 50%,if you leave it until april you will come in the 100% bracket.The catch is 0% are they offering 0% after march probobly not,therefore you will have to pay there interest rate which will eat up the other 50%,i was advised to get one before as it`s 0% and wouldn`t really end up saving.If there is a recesssion and they can`t shift vans and they keep offering 0% that`s when you`ll be quids in as it will be after march when the 100% comes in,the thing is this could be for sometime and they might not be offering the 0%.You have to gamble of whether you think they`ll have a job selling vans in general and the low % interest rates will be offered,the safest way is to buy at 0%.
If you buy a van after march the chances are it won`t be interest free,therefore the other 50% that you can then claim after april will be eaten up by interest on the van payments.If they continue to offer 0% after march on vans you will be much better off but it`s unlikely.
And i am 100% confused or is it 50% ??? ???
Dean
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i dont actually understand that answer :( are you saying that the amount you can claim in first year on capital purchases increases to 100% after april ???
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Yes.
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Yes.
garbage plain and simple ;D
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CAPITAL ALLOWANCES;first year 50% for small business,25% of cost in subsequent years . DIY SYSTEMS........DONT FORGET you can claim back 100% of the cost of the component parts of your trolley or van mount(NOTE not the ro system or di units only 50% of there value in first year etc etc) pumps,tanks,resi poles,varistream,hoses,reels etc. ;D Thats DIY only tho
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Hi guys...this is all rather confusing!!
Am i right in thinking that if you can currently claim 50% in your first year, and then 25% there after...you keep claiming 25% of the residual value, so on a £3000 van:
Year 1: £1500 to claim
Year 2: £375 (25% of the remaining £1500)
Year 3: £281.25 (25% of the remaining £1125)
Etc...and this carries on from year to year. Or can you only claim for a number of years?
Secondly, the whole 100% after April. Are you saying that if you purchase a £3000 van after this date you can claim the full £3000 in this tax year?
Lastly...what is the score if you get a van on finance and the deposit you put down is the VAT, e.g van worth £10000 + VAT, deposit is the VAT, so £1750. If you're not VAT registered, does that mean you can't claim the £1750? And what would you claim of the monthly outlay on the finance?
Sorry for the dumb questions, i'm just in the process of making my first major vehicle purchase!
Thanks
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dont take all this as gospel ;D cos i aint got paperwork to check it all but your first example seems right to me. secondly NO you cant claim 100 % of cost of a van under capital allowances( UNLESS it is low emissions thing)dont know where that idea came from really.lastly vat not my strong point but you can claim cost of finance payments back as business expenses and also capital allowance on original cost of vahicle I THINK (but dont take my word for it ;D)
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For 2 years according to my acountant at 4.30 today,there offering 0% at the moment on vans if you purchase before 31st march which means you can claim the 50%,if you leave it until april you will come in the 100% bracket.The catch is 0% are they offering 0% after march probobly not,therefore you will have to pay there interest rate which will eat up the other 50%,i was advised to get one before as it`s 0% and wouldn`t really end up saving.If there is a recesssion and they can`t shift vans and they keep offering 0% that`s when you`ll be quids in as it will be after march when the 100% comes in,the thing is this could be for sometime and they might not be offering the 0%.You have to gamble of whether you think they`ll have a job selling vans in general and the low % interest rates will be offered,the safest way is to buy at 0%.
I see what your saying but if you buy a brand new van on 0% they want about 30-40% of the value as a deposit. This can be a lot when your buying a van at £13,000 + vat!!!?
Or is there other ways around it?
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found out today for deffinate that its true new vans bought will be 100% tax deductable from the 6th of apr 2008
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found out today for deffinate that its true new vans bought will be 100% tax deductable from the 6th of apr 2008
Thankyou Clear Vision i am now waiting for Mr Thorpe to say he`s sorry. :-* :-* :-* :-* :-*
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fair do nwh i apologise unreservedly the aia reform does indeed allow you to claim 100% of the cost of eligible plant and machinery for the first 50k of expenditure which is pretty amazing actually ;D what worries me most about this is that in between your post of "yes" and my rather smug and overly cocky "garbage" i had phoned revenue and customs to ask if they knew about any changes to the capital allowances and after 15 min wait iwas put through to a "technical expert who would be able to answer my question properly" and my reply was based on what she told me,so i find it worrying that even the numptys in the tax office cant be relied on for up to date info,once again sorry for being a self righteous prat :-[
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found out today for deffinate that its true new vans bought will be 100% tax deductable from the 6th of apr 2008
Thankyou Clear Vision i am now waiting for Mr Thorpe to say he`s sorry. :-* :-* :-* :-* :-*
bump :-[
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Yes.
garbage plain and simple ;D
;D ;D ;D ;D
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fair do nwh i apologise unreservedly the aia reform does indeed allow you to claim 100% of the cost of eligible plant and machinery for the first 50k of expenditure which is pretty amazing actually ;D what worries me most about this is that in between your post of "yes" and my rather smug and overly cocky "garbage" i had phoned revenue and customs to ask if they knew about any changes to the capital allowances and after 15 min wait iwas put through to a "technical expert who would be able to answer my question properly" and my reply was based on what she told me,so i find it worrying that even the numptys in the tax office cant be relied on for up to date info,once again sorry for being a self righteous prat :-[
Accepted. :-* :-* :-* :-* :-* :-* :-* ;D ;D ;D
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cheers for that would not have said your info was wrong without checking first, however good old customs and revenue managed to do it again ::) i am currently waiting for a "senior technician" to ring me back and explain why their own staff are not capable of giving out correct advice ???I am not holding my breath ;D once again my apologies but you have to admit it does sound almost to good to be true :) cheers
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cheers for that would not have said your info was wrong without checking first, however good old customs and revenue managed to do it again ::) i am currently waiting for a "senior technician" to ring me back and explain why their own staff are not capable of giving out correct advice ???I am not holding my breath ;D once again my apologies but you have to admit it does sound almost to good to be true :) cheers
I tell you what i couldn`t beleive it myself mate when i heard it,my accountant is spot on and would have never have said it if it wasn`t right,he knows i`m looking for a new van and rang to let me know.I think i`m going to go for 1 in April now as it`s 100% claimable.We just need to hope that they extend the 0% into April so we`ll benefit even more by saving on interest.