[Roy Harding]

Vehicle depreciation I phoned the self employment tax help line tel no 0845 9000444.

You can claim 25% each year of your vehicle.

So if your van cost say £10,000.

25% of 10,000 = £2,500 you claim the first year. Then the next year you claim 25% of £7,500  =  £1,875.

And so on for the next years.

Roy

[AuRavelling79]

If it's brand new can't you choose 40% in the first year Roy?

[Pj]

I thought, first year of purchase, new or used 40%.

Will ring Tax office tomorrow

[D.Salkeld_Ltd]

Hi Chaps,

One little whip in the tail of this one:

If you buy a van for £10,000.  After a year you claim 25% £2500.  After another year you claim 25% of £7500, £1850.  Thats £4350 off the original value x 22% = £957 saved tax over 2 years.OK.

Now, say you sell the van after 2 years for £7000.  That means you have only lost £3000, £1350 less than claimed. 

The tax man will want £1350 x 22% = £297 BACK!!

David

[Moderator David@stives]

I heard it was 40% on a brand new vehicle then 20 % each year

Dave

[craig jwc]

I was told the same that Dave posted by the Tax Office

[Roy Harding]

I will ring them and ask again about the 40% for a new van. But she did say 25% per year.

Roy

[Roy Harding]

Now, say you sell the van after 2 years for £7000.  That means you have only lost £3000, £1350 less than claimed. 

The tax man will want £1350 x 22% = £297 BACK!!

David

Dave this is true as it did happen to me years ago.

Roy

[Roy Harding]

Yes you claim 40% of a new Motor in the first year and 25% on all other years.

Also the same for new Computers ( Ian )   as it is classed as a capital item.

Roy

[Paul Coleman]

Yes you claim 40% of a new Motor in the first year and 25% on all other years.

Also the same for new Computers ( Ian )   as it is classed as a capital item.

Roy

I believe that the IR were allowing the entire cost of a computer to be offset in the first year a while back.  It was in order to encourage computer usage.  Has it now reverted to spreading the allowance over several years?  It wouldn't surprise me as these regs do seem to change from time to time.

[freshwater]

BUT,

Remember that the remaining 60% of the value you will have to pay tax on, and also on the remaining 75% in the followingyears. Try costing a purchase lease, you do pay interest but because the payment is a general running cost it all through the books.

steve@freshwatersystems.co.uk

[thewindowcleaner1]

Also the same for new Computers

I had a right up and downer with the IR a couple of years ago at first they would not allow me to claim for a computer even though I used it to maintain the round and a web site said "windowcleaners don't need them" so i stayed quite that year and claimed for it the following, which reminds me its about time I had myself a new one..

[macc]

Got home from work & had a letter from Inland Revenue, i owe them £159. Didnt realise, if its not paid in 7 days in court.

Phoned them to say not a problem will pay not next week but the following, sorted.

Guess Tony is scraping arround for some money so we can go to war with Iran now.

Macc

[Paul Coleman]

Also the same for new Computers

I had a right up and downer with the IR a couple of years ago at first they would not allow me to claim for a computer even though I used it to maintain the round and a web site said "windowcleaners don't need them" so i stayed quite that year and claimed for it the following, which reminds me its about time I had myself a new one..

I don't know how you went about it but I regard a computer as one of those items that are part business/part private.  Therefore, I only offset a proportion of it against tax.  I feel that they were very wrong in totally disallowing your claim originally.  Computers are an excellent tool for keeping work records and a printer for printing them out.  Also, you can print your own stationery.  I find mine to be an essential business tool - though I'm sure I would adapt if I didn't have one.  When I first started, I used those machines in shops to print business cards.

[thewindowcleaner1]

Hi shiner

I've estimated without mine I'd be spending about another 4-6 hours a week keeping rounds and records straight not to mention the plus of desk top publishing, I,m going for it this year claiming for a palm and a new lap top as I need information at hand

[Paul Coleman]

Hi shiner

I've estimated without mine I'd be spending about another 4-6 hours a week keeping rounds and records straight not to mention the plus of desk top publishing, I,m going for it this year claiming for a palm and a new lap top as I need information at hand

Good for you.
I don't know what the taxman will make of my accounts this year.  My accounting year ending September 30th last year contains some WFP equipment (trolley, pole, brushes etc) even though it was another month or so before I really started with WFP.  I just made sure I bought some of the stuff a bit early in order to start claiming for it.  The really big one isd the following year though when I bought a bigger van, had a tank fitted, bought some more poles, then all the peripheral items like resin, connectors, hoses and reels.  I'm due a fairly hefty bill this year but next year, I will probably have a very small bill - especially as the money was all borrowed and I will be claiming for the interest too.

[master cleaner]

ive had letters off the inland revenue telling me i owe them money so i phone them and tell them i cant remember borrowing any money off them in the first place 

only kidding

gary