HOW MUCH TAX CAN YOU CLAIM BACK ON A VAN? SELF-EMPLOYED SPECIAL
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- เผยแพร่เมื่อ 7 มิ.ย. 2024
- Buying a van for your business and not sure how the tax relief works?
In this video Dan runs through how you can claim tax relief on your work van.
Topics include:
Capital allowances on a business van
Annual investment allowance for van
VAT on van for business
Self-assessment tax return
Cash basis
Accruals basis
Motor expenses
HMRC mileage rates / Fixed rate mileage
00:00 Intro
01:00 Hire purchase and cash purchase
01:18 Leasing and renting a van
02:15 Motor costs for self-employment
03:12 The cost of the van and Capital Allowances
04:15 Two ways to do your tax return
05:30 VAT van costs
06:05 How it works on an existing van
07:00 Selling the van next year
08:18 What is better lease or buy
09:10 Summary
… and more!
If you have any questions or thoughts on this, please comment below.
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#accounting #smallbusinessuk #tax
Note: As always, these videos are educational and should not be considered financial advice. Seek professional advice.
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?
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 ?
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.
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
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.
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!
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 😃
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?
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.
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
You have around 12 months to amend online, so it’s usually totally fine to do this.
@HeelanAssociates Thank you very much
Sole trader about to trade my 2020 PCP car in for a van, any tips?
From a tax point view sounds like you might be in for some better tax relief, presuming the car was electric! Vans are generally better for tax.
Can I get a personal loan to buy a van as a sole trader, the bank says I cannot
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.
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?
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.
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
Hi, can you do one on leasing an EV, Self Employed.
Yes certainly could. Similar rules actually but more complicated because of being a car.
What if you give the van away for free because it is broken
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.