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Where Taxpayers and Advisers Meet

Sole trader Van purchase advice

Gregg1
Posts:2
Joined:Wed Nov 09, 2016 3:02 pm
Sole trader Van purchase advice

Postby Gregg1 » Wed Nov 09, 2016 3:16 pm

Hi,
I'm a sole trader & not VAT registered. I want to buy a 2nd hand crew cab panel van with cash. It will be best for me to do AIA & not mileage as I'm a labourer & don't travel far from home.
I have seen on another website that the amount I can claim depends on the Euro rating / CO2 emissions. Is this true as I want to purchase the lowest milage van for the best price, for the year of registration etc? Is it the whole price of the van that is deducted from my profit for this year or just the VAT & if it is used 50/50 personal & business does this make a difference? Is servicing, insurance & repairs & breakdown cover fully included too? Also as it is a second hand van & not new are the co2 emissions rated on the most current mot.
I would sincerely appreciate your help in this matter as I can't afford an account at present & could do with all the help I can get.
Many thanks,
Gregg

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Sole trader Van purchase advice

Postby pawncob » Wed Nov 09, 2016 5:15 pm

With a pinch of salt take what I say, but don't exceed your RDA

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Sole trader Van purchase advice

Postby bd6759 » Wed Nov 09, 2016 6:59 pm

CO2 doesn't apply to vans. The first thing to check is that the pick-up does not qualify as a car.

AIA can be claimed on the full purchase price (if it is not a car), but it must be restricted by the non-business use. You say 50/50, so it would be half that you could claim. You also say that you don't travel far from home, which may suggest that your business miles are less that 50%. You must keep a record of your business miles.

Gregg1
Posts:2
Joined:Wed Nov 09, 2016 3:02 pm

Re: Sole trader Van purchase advice

Postby Gregg1 » Thu Nov 10, 2016 9:53 am

At present I use one of the vans the company I am currently working for have allowed me to, so haven't as they don't require me to, record mileage. This van is about to be scrapped hence buying my own. My partner uses the car we own which we'll need to get rid of & share the new van I get, as we can't afford to run 2 vehicles. It will b used for business approximately 3-4 days a week which equates to about 50% (I will however start recording the miles I currently do in the van & my partner does in the car so I can gauge this more accurately thank you for this). How would i prove the usage when i claim for the van, when i have no current FY records to show it? How do I record these officially? Is it sufficient to keep a spreadsheet with date, mileage & location?
If it does end up with my partner using the van more, is it a case of me then claiming the smaller percentage or does this disqualify me from claiming at all? Can I still claim for van maintenance etc?

Thank you for mentioning the type of van, I've just checked & the make & models im looking at have a big enough payload to class as vans not cars despite the additional seats & rear windows.

Many thanks again

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Sole trader Van purchase advice

Postby bd6759 » Thu Nov 10, 2016 6:54 pm

Travel to the place where you work is not business travel, unless you have a succession of different workplaces. You said that you won't do much mileage because you live near your work, that is why I queried the ratio.

All expenses can be apportioned in the same business miles/total miles ratio.

You can record miles any way you see fit. Date/mileage/location/purpose is normal.


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