[julianbiggs]

Hi guys.

We've just bought a brand new van 50% cash and 50% finance.

Am I right in saying that for tax purposes we can write off 50% this year against tax, 25% next year and then the final 25% in year three, as long as we still have the van ??

Is this correct...If not please advise ?

Thanks

Julian

[Pole 2 Pole]

Hi Julian, unfortunately i can't help you out  but i'm interested in what you said cos i also bought a van last year £5k, but paid outright. I was gonna ask in the near future how i'd go about puttin that down in my tax return. Hopefully someone can help us 

[Mark Sadler]

Emlpoy an accountant, i just don't understand business people who DIY. You might do it wrong and could cost you a fortune for the sake of paying an accountant a couple of hundred quid. :

[williamx]

Julian

You will find that you can claim 50% of the cash amount this year with the following 25% for the next few years until you have reclaimed the cost back, with the finance part, you can claim 100% f the interest and 50% of the vechicle cost plus 25% for the following few years.

If you sell the van then you have to declare this.

[rs_cleancare]

Hi,
Just had this discusion with my accountant as i bought a new van this year.
It used to be a depriciation over 4 years for tax.
Now they have changed it so you can write it all off in the one tax year.

Rob.

[Moderator David@stives]

Hi,
Just had this discusion with my accountant as i bought a new van this year.
It used to be a depriciation over 4 years for tax.
Now they have changed it so you can write it all off in the one tax year.

Rob.

As of this tax year 2008/2009  not last year, i suppose you can get the full remainder next year

[HIGH LEVEL WINDOW CLEANERS (scrimmy)]

but i fink you still have the option of claiming every red cent you pay in instalments each month and each year till its paid including interest against your final return......dont quote me though

i bet they all do ...all these wee boxes suddenly appear...scrimman wrote:

[Big Dave @ CWC]

hi, i have a brand new astra van on 58 plate, paid £1000 deposit, plus £200 administration fee, i got it on lease hire,

i can claim back all the rental costs and the interest but not the vat, deposit or admin costs.  after the contract is up i will have paid £4500 for the used of a new van for 4 years that will have come out of my pocket after which i will give the van back in return for another new van and start again.

this is the best way you can gain a new motor for your business using the tax advantages in the current tax climate. the rules change each year......... so be prepared for the worst......   i got mine from vansdiect.co.uk. they r very helpful, give them a bell if you want to get yourself one, but remember you may be able to claim all this back, but, are you earning enough to have anything to claim back. you need an established round bringing in decent income to benefit from this. i dont want any of you guys finding yourself in financial trouble for doing this......

[robbie14000]

Hi, You can get 100% back if you are a Ltd company in first year.
Bought a vivarro 6 months ago and my accountant gave me the good news last friday.
So hopefully won,t have a large tax bill in june.
Cheers
Robbie

[William Tyndale]

Completing the self assessment tax return form also includes calculating the capital allowances which compromise of two elements. Capital allowances being a first year allowance which can be claimed on some types of fixed asset and writing down allowance on the net asset value in subsequent years until the total value of the fixed assets has been claimed against profits earned.

 

The rate of first year allowance for small businesses has changed each year from 2004-05 to 2007-08 starting in 2004-05 at 40%, rising to 50% the next year and then back to 40% in 2006-07 before returning to 50% in 2007-08. The first year allowance can be claimed on most assets except vehicles were special rules are applied.

 

Generally first year allowances can not be claimed on vehicles except if that vehicle is deemed to be a commercial vehicle. The inland revenue website contains a list of vehicles it considers to be vans and commercial vehicles and first year allowances can be claimed. Cars and commercial vehicles not on the approved list are not subject to a first year allowance except new vehicles with low CO2 emissions below 120gm per km driven.

 

The writing down allowance is 25% of the net written down value for tax purposes and is the amount of capital allowance claimed on fixed assets after the first year and in the case of motor vehicles used for business purposes in the first year. Capital allowances on motor vehicles being restricted to a maximum of 3,000 pounds per vehicle and vehicles costing over 12,000 pounds being in a separate section of the tax return to those under 12,000 pounds

[Dean Taberner]

Apparently its 100% this tax year according to my accountant.

I bought my new van last tax year though

[Moderator David@stives]

dean

I am sure you can offset the ramainder next year, pointless doing it next year if you dont make full use of your tax allowances this year