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I am no expert on tax matters but from what I believe if the van is used 100% for business use then yes all £180 can be put down . Say 50% of the time its for personal use then £90 can be claimed for . What sort of van are you looking at ?
Thanks, movano 21 reg £10k plus vat at a main dealer. I really like my vivaro but sometimes it's just not quite big enough.
Be careful here. The Movano up until 2021 is a Renault Master with Vauxhall engine, Stellantis amalgamated Fiat. Citroen ,Vauxhall amd Peugeot in 2021 and the Fiat Ducato, Vauxhall Movano, Citroen Relay and Peugeot Boxer all started to use the same body shells albeit with different engines. This year all now use the Citroen engine.
We have always bought Ducatos as the engines were acknowledged as the best and most fuel efficient and think we are now on our 12th having managed to buy one of the last new Ducatos with Fiat running gear amd tempting fate have had few issues.
Suspect that you are buying the Renault based Movano judging from the price ? We have just sold as part ex a 21 plate L3 H2 Fiat Ducato 40k miles and got £10,500 plus vat, dealer sold it for £14500 plus vat.
The Vauxhall engined ( Renault Master) does not have a great reputation ! I would try and find a Ducato.
Thanks, I'll check it out. My vauxhall brava pick up was an Isuzu with vauxhall badges on and my vivaro is a renault with vauxhall badges on!
Martin, we have bought many new vans on finance. We usually put the vat down plus part ex value as the deposit. Disregarding the finance for the time being, the total cost of van can be written off either in one lump or spread over a few years, our accountant always advises to write the total cost off in one lump.
Do comsider that assuming your part ex has been written off there will be tax to pay on it"s value you get as a part ex.
Although the new van is on finance and strictly speaking has not been paid for you can write off the cost as mentioned.
As to the finance, only the interest is tax deductible not the capital ! As the capital cost has already been deducted.
Hope that all makes sense any queries come back to me.
We buy new and after paying the deposit with the part ex and the vat have the balance over either 3 or 5 years on HP but only keep the vans for 3 years while they are under warranty. After 3 years there is usually enough value in the part ex to pay the vat and clear most if not all of the finamce this of course depends on how much you have decided as your monthly repayment.
Thanks for that, I tend to keep my vans a long time- I've had two in twenty years, hence the question - I don't buy vans very often!
I think that is true... but Id check with an Accountant or HMRC
After 12 vans definately right. But always wise to use an accountant as everyones circumstances are different
I may be on my own here but I've always avoided paying for things on finance. If you can afford to pay the finance you can afford to save and buy it outright plus you don't have any interest to pay so it makes them far cheaper.
Maybe I'm missing something but I really don't understand why anyone does monthly payments.
Going back to your question the total value is written off in your first year against your tax minus the price you get with your trade in. Which means the £180 a month won't be against your tax so you have that to pay plus your tax for the following 4yrs
Going to disagree here, we used to buy used with cash as at the time could not afford new. But numerous very expensive repairs along with the downtime changed our ethos to only buying new and only keeping for the 3yr warranty period. It has worked well for us over the last 30 plus years, does help if you are vat registered.
They have all been on finance to some extent and yes paying cash is always best but unless you have substantial amounts available it will crush the businesses cashflow. We work on the principle that the money in our account can be used to generate profit that will exceed a piddling amount of interest and gives us the flexibility to buy new kit for new jobs or to replace old kit.
We have just borrowed 10k over 36 months and the interest is £42 pcm ! Or just over £10 week if you can't exceed that by using the cash in your account there's no hope. And remember the interest is 100% tax deductible so it is at no cost to the business. Why tie thousands up in a depreciating asset when the money can generate profit ?
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