Reply to: Capital allowances - Company Vans

[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.

[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?

[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]

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......

[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?)

[dude69]

What are the choices?

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

[monkeyboy]

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

[freebo]

buy a CAR that emits less than 120g/km of CO2 and get 100% capital allowance!!!
Do really want a van parked outside your house!?

1. Yes, I do want a pickup truck parked outside my house, in many, many ways I would find it extremely useful, I don't however want a mini (or similar) parked outside my house

2. 100% Capital allowance but nearly double the taxable Benefit in Kind (if you include private fuel).

3. Al Gore lied http://news.bbc.co.uk/1/hi/education/7025119.stm, I've read the books, watched the movies and concuded IF global warning is happening, its not man made. I'm just trying to save some money, not save the planet.

Its all off topic really, I just want to know how the Capital Allowances would affect my bottom line.

[Hiram King Of Tyre]

I guess going this route though, you can't then use a private car for 10k miles at 40p?

[Hiram King Of Tyre]

Anything non-bmw?
www.bmwlemon.com/dontbmwcare.htm .......never again!

[adder]

check them out here http://www.vcacarfueldata.org.uk/search/search.asp
not great and most small but does include 118d and Mini Cooper D which hold their value very well. And don't forget, you're doing your bit to SAVE THE PLANET

[Hiram King Of Tyre]

buy a CAR that emits less than 120g/km of CO2 and get 100% capital allowance!!!
Do really want a van parked outside your house!?

What are the choices?

[adder]

buy a CAR that emits less than 120g/km of CO2 and get 100% capital allowance!!!
Do really want a van parked outside your house!?

[freebo]

As far as I can tell there is no need to prove a business need.

[Hiram King Of Tyre]

I was considering getting a pick-up (which is taxed the same). Do you need a business need though?