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Where Taxpayers and Advisers Meet

New vehicle for business

Phil1744
Posts: 7
Joined: Fri Feb 01, 2019 1:54 pm

New vehicle for business

Postby Phil1744 » Fri Feb 01, 2019 2:05 pm

Hi there,

I hope someone can help, as my head is about to explode from information overload.

I'm a self employed sole trader, and I'm about to purchase a new van.

But the money is made up from different 'forms', so;

Some is gifted money
Some is a loan from a family member, interest free.
And some is vehicle finance, with interest.
I also part ex'd the old van which took money off the new one.
And payed a 300pounds deposit out right.

Any help on what I can claim on all this would be really helpful thank you.

Lambs
Posts: 1420
Joined: Wed Aug 06, 2008 3:15 pm

Re: New vehicle for business

Postby Lambs » Fri Feb 01, 2019 2:12 pm

P,

It matters less where you got the money from and more what you spend it on. In this case, buying a new vehicle for your self employed trade will generally be eligible for Capital Allowances - and Annual Investment Allowance in particular. So a 100% tax allowance in the year/period of acquisition.

You may also be able to claim the interest as a further business cost.

I am assuming you are NOT cash accounting. The rules are quite different under cash accounting and may work against you in this scenario.

Regards,

Lambs

Phil1744
Posts: 7
Joined: Fri Feb 01, 2019 1:54 pm

Re: New vehicle for business

Postby Phil1744 » Fri Feb 01, 2019 3:04 pm

Thanks so much for your reply!

Unfortunately I am cash accounting at the moment. The business is relatively new and very small so this seemed an easier way to go about it.


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