Capital allowances - Company Vans

[dude69]

What are the choices?

http://www.honestjohn.co.uk/faq/faq.htm?id=81

[Hiram King Of Tyre]

Thanks.

I think 40p per mile is more attractive (assuming that having a co vehicle precludes you from using a personal car?)

[adder]

Thanks.

I think 40p per mile is more attractive (assuming that having a co vehicle precludes you from using a personal car?)

Well yeah I was actually thinking about doing BOTH myself!
Give the ratty hatchback/seriously good little car ( dude69 vs honestjohn http://www.honestjohn.co.uk/road_tes...ex.htm?id=276& ) to the wife/girlfriend/mistress/au pair

PS sea temps are rising so global warming/climate change is happening......

[Flat Eric]

i've got a van.

Lease finance it

basically 100% rightoff for the five year duration. At that point you have to sell it. Sell to a vat registered entity. Then buy it back and right it off again.
Claim the vat.

It great you get to right off the purchase price twice.

Basically you rent for five years 100% rightoff then purchase.

Got merc vito with sat nav auto etc its great

Is this legit?

Could you, for instance, sell the van after the 5 years to your buddy's LTD and then immediately buy it back?

[adder]

i've got a van.

Lease finance it

basically 100% rightoff for the five year duration. At that point you have to sell it. Sell to a vat registered entity. Then buy it back and right it off again.
Claim the vat.

It great you get to right off the purchase price twice.

Basically you rent for five years 100% rightoff then purchase.

Got merc vito with sat nav auto etc its great

So you turn up to a customer's site in a Vito Van!? Are you the cat5 (cable) guy or do you get mistaken for the carpet fitter?

[monkeyboy]

Is this legit?

Could you, for instance, sell the van after the 5 years to your buddy's LTD and then immediately buy it back?

I couldn't believe it but checked with the accountant. Completely legit for now anyway. rarely abused as most comanies have killed there van after 5 years. The 5 year limit is a govement set limit

Basically I will sell it for market value, finance company gets 5% I bye it back with the comapny and at present I can right off this value again against tax.

There are no rules as to the ammount of business mileage you have to do, as long as you pay the BIK tax they don't care. I do 100% private mileage at the moment as I use the train to get to work.

You have to do alot of miles to make this worth while. basically it will cost £1400 a year BIK plus what ever the company pays but you pay no vat on fuel or the vehicle.