Buying a van on the drip

[Peter]

Any of you fellas who have a newish van on finance, is it worth it for tax reasons or will it still cost you a lot of money in the long run? Can you just write off the full expenses each year from capital expediture so instead of losing it in tax, you're using it against a new van? ie if it's costing you 3k a year is the full amount recoverable?

Tempted to get something a bit fresher but unsure if it'd just be a money pit compared to something bought outright.

 

[Diggy]

Capex is 25% per year.

Ie: van cost 10k .

Y1 - £2500 capex against tax
Y2 - £1875 capex ( 25% of 7500
Y3 - £1406 capex ( 25% of £5625
Y4 - this last year i let you do the math.

Diggy.

 

[DHTiling]

But you can claim the full 3 yrs back in yr 1 now.

 

[Diggy]

Ah ok , cheers dave. Been a about 5 yrs since i bought my van so it obviously changed. Must look into that.

 

[DHTiling]

It changed around 3 yrs back. I tend to get a can every 3 yrs. but they ain't getting any cheaper lol.

 

[Gazzer]

It changed around 3 yrs back. I tend to get a can every 3 yrs. but they ain't getting any cheaper lol.

Can of what ?

 

[DHTiling]

Lol. Bloody iPhone text predict.

 

[Andy Allen]

well that's opened up a can of worms...lol

wouldn't it be cheaper getting a loan then buying a van..?

 

[Gazzer]

But you can claim the full 3 yrs back in yr 1 now.

Thats what I did.

 

[Peter]

Would you fellas say it's worthwhile then if you've got a lot of tax to pay? Does it have to be rigged up with vehicle finance or can it be in conjunction with a bank loan?

Know nothing about it as anything I've had has been down the years and bough with £20 notes. :lol:

 

[Gazzer]

Mine was a private loan so essentially I paid for the van cash but accountant put it against my tax bill for this year and I ended up with a rebate !

 

[salmonfisher]

claim the full cost of the van in the first year then the interest paid on the loan

example
van £10000 claim this back in first year (deduct from profits)
monthly payments £200 of this say £25 is interest claim this back (£25) or £300 per year (deduct from profits)