Van : offsetting cost against capital expenditure

[Vectis]

Vans are allowed as part of your AIA, however cars are not.

http://www.ukbusinessforums.co.uk/fo...d.php?p=557044

I stand corrected. Vans are "plant and machinery".

http://www.hmrc.gov.uk/manuals/eimanual/EIM23021.htm

so probably best to ignore everything I wrote earlier and speak to an accountant Told you I was on the vino...

Right ... off out tomorrow to buy a new van methinks

[Solitaire Events Ltd]

Right ... off out tomorrow to buy a new van methinks

And a new bottle of wine...

[ppentertainments]

Now it's a long time since I checked out the rules, and things have changed, but I'm still of the opinion that vehicles with values sub £4k or £5k are probably more tax efficient purchased, whereas more than this leasing is better.

But I totally agree this should be run by an accountant especially if you're already in a "loss" situation.

I was told similar by my accountant. I already have a people carrier and he advised me to wait until I was in the black (this year), then look at a new van. He also reccomended leasing. His advice was that unless it was an absolute neccesity, buying a van whilst in the red may lead to questions asked, especially if using for personal use as well.

Now I am in the position to get a van though, I am reluctant to get rid of my trustworthy, reliable people carrier.

[Grahame Case]

yes, i'm probably completely stupid.

but I am considering the option of buying this van using personal equity and leasing it to the business.

will run that one past the accountant as well, i really can't see that washing with HMRC.

never got a chance to call today.

[Vectis]

but I am considering the option of buying this van using personal equity and leasing it to the business.

What he giveth, he shall take away.

IF he allows it...

... then the income you earn from leasing the van to yourself will be taxable

[Jiggles]

Nothing is easy when it comes to Tax is it?

[Grahame Case]

What he giveth, he shall take away.

IF he allows it...

... then the income you earn from leasing the van to yourself will be taxable

that's okay, as the money i'll be paying out to the finance company will be the same value, so in turn my outgoings will balance.

I think....

now i'm confused


just emailed accountants, shall get an answer either this evening or tomorrow

[Penfold42]

Nothing is easy when it comes to Tax is it?

Don't talk about tax and taxman..... ...

I'm seriously looking at Merc Benz Dual Liner for next year.

Then let my accountant work out the headache....

[Grahame Case]

my plan is get all the expensive purchases and necessary purchases done in year 1, then balance up the books in the forthcoming years,

[Mark Wild]

Is a £14,000 Van a necessary purchase?