if i buy a van for my business can i claim anything back on
Tony Tax. Tax Consultant replied 5 years ago.
You should be able to claim back the VAT on the cost of a new van if it has a payload of one tonne or an unladen weight of three tonnes. Take a look here for more information.
You can also claim capital allowances on the cost of the van excluding the VAT if you have reclaimed it. There are two ways of doing this:
1 You can a writing down allowance at 20% per annum. So, if a van cost you £10,000, in year one you would claim an allowance (a deduction from your profit) of £2,000 (£10,000 x 20%). In year two you would claim an allowance of £1,600 (£8,000 x 20%). In year three, you would claim £1,280 (£6,400 x 20%). The allowance
gets smaller and smaller each year.
2 From 6 April 2008, the Annual Investment Allowance was introduced. You can claim a 100% deduction for up to £50,000 of expenditure on plant and machinery against the profits of the year in which the expenditure is incurred. In this way, you get tax relief on the cost of the van in one year as opposed to several smaller individual deductions over a number of years. Take a look here for more information on the AIA.
In addition to the above, you will be able to claim a deduction in your accounts for the van running costs, such as road fund licence, insurance, servicing, repairs, MOT, fuel etc. The claim should be adjusted to take account of significant private use.
Edited by Tony on 10/4/2009 at 10:05 AM ESTSource: www.justanswer.com