Tax question regarding buying a works van`

Stinky

Stinky

Stinky

Soldato
Joined
28 Mar 2005
Posts
9,250
hi all

ive been self employed now for 7 months and all is going well. however its time that i bought a new van for work which will also be my accommodation while im away working.

now im wondering how much of the van cost i can claim back through my accounts? also do i need to buy through a dealer to get a official receipt or will buying privately still work??

didnt know weather or not there was extra relief if it was accommodation as well as my works van

looking at spending up to 8k max on my camper. looking at getting a VW t4 conversion
 
edit: ignore what I said, looks like with vans, unlike cars, you may be able to take it from your annual investment allowance of 50k and the full value (or partial value if you use it for some personal use) can be written off against tax.

Still, best to talk to an accountant and make sure that's the best way of doing things.
 
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Stinky said:
i wanted to try and aviod going to my account as he will charge me lol trying to be tight i suppose lol
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Better paying a little now than getting it wrong and facing an investigation from the tax man, including a nice 10% fine (plus interest) on any underpaid tax.

If you can write the whole amount off you can then look at your income and see if you'll qualify for more benefits - there's an interesting thought experiment done by a tax reduction specialist where he figured out how to make benefits and allowances essentially pay for a brand new van.

http://shaunstaxtips.blogspot.com/2009/04/annual-investment-allowance-and-tax.html
 
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From the sounds of it there'll be private use, so you'll not be able to claim back the full cost for tax purposes.

Also, I'm not convinced about that blog post above to do with using tax credits to cover the cost of the van. It'll work in one year, but he's saying that in the second year she can claim increased tax credits again. You can - in the short term - but when it comes to the end of the year you'll have to declare your actual income. The issue with increases in income of £25k only applies to needing to notify the Tax Credits folk of changes mid-year.
 
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vonhelmet said:
From the sounds of it there'll be private use, so you'll not be able to claim back the full cost for tax purposes.

Also, I'm not convinced about that blog post above to do with using tax credits to cover the cost of the van. It'll work in one year, but he's saying that in the second year she can claim increased tax credits again. You can - in the short term - but when it comes to the end of the year you'll have to declare your actual income. The issue with increases in income of £25k only applies to needing to notify the Tax Credits folk of changes mid-year.
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IIRC, the income disregard isn't just about notifying them in year, the government raising it to 25k was to stop people having to search around for money to pay back an overpayment if they earnt as little as 2.5k more in a year (easy to do if self employed). The form asks if you income for the previous year was under 50k, and if the income for next year will be under 75k (if in a couple), so even with the increase in profits the 2nd year she'll still be under the threshold.

Stinky said:
does it work as a %age thta you can claim back? how does it get worked out
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Simple, if you are going to be using it 50% for work, 50% privately, then you can write off 50% against your annual investment allowance, if 70/30 (work/private) then 70% etc. You need to come up with as accurate a number as possible for the split.
 
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ah is it as simple as that.

well i have a car that i use at home but i will use the van for me and mrs to go away in a few times a year. so i guess it would be 80/20
 
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