HOW MUCH TAX CAN YOU CLAIM BACK ON A VAN? SELF-EMPLOYED SPECIAL

[@safc2951]

Hello and help, so , I buy a van say 30,000.00 plus vat, I understand the vat part, so I can claim back 100per cent of 30k x 19percent CT , so I save £5700.00 from my ct tax bill and when I sell it in 5 years for 10k plus vat I get taxed £1900.00 is that correct, thanks in advance

[@HeelanAssociates]

Hi, so what you describe is a likely scenario yes, but I am presuming a lot (such as the ability to claim the right capital allowances etc). In a generic scenario where the tax rates are 19% this is a common outcome yes.

[@safc2951]

@@HeelanAssociates Everybody is under the impression they claim the or the 30,000.00 off there tax bills, some accounts fail to explain the correct figures and never mention when you sell you have to pay the tax back, thanks for being transparent. We will more than likely all be bankrupt after the budget. When Labour crash the economy.

[@seanfajardo8460]

Hi Dan, say if I was going to buy a 10k Van. How would I go about claiming this as tax deductible? Would it be 20% every year for 5 years? So £2000 a year? How does it work?😁 Thanks in advance

[@bet_big9917]

What if you give the van away for free because it is broken

[@HeelanAssociates]

Presuming you mean after you’ve claimed tax relief, you’d retain proof and that would be it. If there was truly no value there is no adjustment. This can happen if say it got wrote off and for some reason insurance didn’t pay out.

[@joepurches9949]

Hi. Is the interest on the HP finance deductible with the cost of the van purchase in the first year? If so would you claim interest paid each year or the full amount over the term of the agreement? Thank you.

[@HeelanAssociates]

The interest is usually claimed each year over the length of the loan.

[@joepurches9949]

Thank you. And can I claim the cost of the second hand van in the first year? It was £3900.00.

[@jamie01]

Hi. Can I choose a fixed percentage of the van's costs (including initial purchase of the van) and deduct against tax? And if I do, can I ammend it each year if required? Thanks, I love your videos!

[@HeelanAssociates]

This may help SELF-EMPLOYED MOTOR EXPENSES EXPLAINED! kzbin.info/www/bejne/hoHRq4GsgdVmoZo You have to treat the vehicle same way each year.

[@ZXspectrum..]

You sent me to this video from a comment i made on anothr of your videos. You said you cant claim caputal allowance when using cash basis...but what about claiming the 18% per year under plant and machinery option using cash basis ?

[@HeelanAssociates]

You don’t usually claim the 18% on p&m when using cash basis. This is rarely used regardless for P&m because you will only use if forced to due to restrictions. Most time you will claim Annual Investment Allowance which is 100% in year one, which is equivalent to how the cash basis deals it by expensing the whole cost in that year.

[@snowehite4233]

What about van lease which includes the insurance?

[@HeelanAssociates]

If you use 'actual costs' for basing your expense claim, motor insurance is generally claimable.

[@snowehite4233]

@@HeelanAssociates the van rental come with the insurance so is that claimable on tax return?

[@markgodfrey8478]

what then happens if you use a van you've claimed total value of in a px for a newer one? Do you then have to note the px price as income or can you just claim the new van total as well?

[@HeelanAssociates]

If you are using the cash basis effectively yea you’d have ‘income’ of the px and expense of the new one, presuming ‘usual’ qualifying conditions are met.

[@chrislyndon6302]

Hey guys I’m a musician who’s a sole trader who only drives a car could you guys expand on the car purchase tax relief you mentioned? I think I’ve got my head around day to day expenses and running costs but purchase has me stumped!

[@HeelanAssociates]

We will add this one to the video list ‘to do’. It’s not a simple one to do so never seems to make the top of the list 😃

[@David-xc4us]

I’m starting up a small business, self employed no vat, and I’ve just bought a second hand van and I heard that I can claim 20% each year over 5 years on the cost of my van (capital allowance?), as I’m not going to earn enough money in my opening year to benefit from 100% of the cost of my van off my tax bill, thanks

[@HeelanAssociates]

You might still be able to use the 100%, as you could take any unused loss forward into next year. This might still get you the tax relief quicker. Whether this is better though depends on your total income level for the year.

[@UserUser-vo2ky]

My case is a bit unusual, i work an hour and a halfs drive from where i live, i work 6 days a week and long hours so i prefer to stay overnight next to the place i work and only go home the night before my day off. I would buy a van to make into a bit of a camper, but also it would be for my work gear and hauling around the odd bits and bobs for work. I would keep the van/camper for at least 3 years and look to change it with the same kind of thing. Do you think i could still claim for the cost of the van, which would be around 15k. Thank you, i really found this video informative, but i cant find any details on my scenario anywhere. Thanks!!

[@jackhopkins9618]

Hi, I am a sole trader, and I am looking to purchase a second hand van today from a private seller. The van cost is £6000 (no VAT) . Do I need to pay it via bank transfer so as the transaction can be traced - and also, do I need to ask the seller for a receipt/invoice? And from what I understand, I can literally just add the full £6000 as a business expense for this tax year. Is that correct?

[@HeelanAssociates]

It’s all about ‘records’. Bank transfer and receipt is obviously a great method but as long as you evidence it in case of inspection it’s fine.

[@jackhopkins9618]

thannks, I ended up buying through a dealer so have a receipt and all tracable via bank transfer. How do I claim this on my tax return in april? Where do I put the £7500 van price? I was told by a friend of mine who does accounting to put any longer term investments generally over £100 as capital allowances (van, tools, etc). Is this right? and where do enter these figures on the tax return?@@HeelanAssociates

[@lathankyparanchothy7106]

Hi, can you actually go back and amend a self-assessment tax return to add a professional fee that you missed out? Would you recommend doing that? Many thanks

[@HeelanAssociates]

You have around 12 months to amend online, so it’s usually totally fine to do this.

[@lathankyparanchothy7106]

@HeelanAssociates Thank you very much

[@markayre9861]

Hi you mentioned in this video if you already own a van and start a business you can still claim tax relief ? As a sole trader using cash basis accounting how does this work?

[@lrolo8974]

Can I get a personal loan to buy a van as a sole trader, the bank says I cannot

[@HeelanAssociates]

Sounds like the bank getting confused or talking about their specific product. As a sole trader the loan you obtain is linked to you either way.

[@lrolo8974]

@@HeelanAssociates as I was going through the process, it says ‘this loan cannot be used for business purposes’ with it being a work van therefore a business.

[@djvjnigel]

Correct me if I'm wrong, I thought there was no VAT on vans?

[@HeelanAssociates]

Normally on second hand ones there won’t be (depends who / how sold) but normally will be on new ones.

[@thumper1747]

@@HeelanAssociateswhen I bought my current 2016 van back in 2018, the dealer said I had to pay the VAT as a deposit. Have I just paid an additional £2500 where there was no vat chargeable. Van was £12,000 plus VAT

[@safc2951]

A decent van will be plus vat most of the time , especially from a dealer

[@ashleyhunt3491]

Great videos. Thank you. I've got a strange scenario. I quit my job in february and go self-employed. I also purchase a second-hand van in february for £15k cash. Because I only have two months of work in that tax year, how or what can I claim for regarding the cost of the van? Let's say I make £4k in february and march and spent £15k on the van, for example. Thanks in advance, and keep up the good work.

[@HeelanAssociates]

Oddly the two months doesn’t change the way it works. So it’s likely you would just have a tax loss (depending how the van was funded) to bring forward or even use against other income. It’s hard to describe the various scenarios in a comment here.

[@ashleyhunt3491]

@@HeelanAssociates The van was purchased using savings. Thanks for your reply. 👍

[@greglewis223]

Hi, can you do one on leasing an EV, Self Employed.

[@HeelanAssociates]

Yes certainly could. Similar rules actually but more complicated because of being a car.