New van & scrappage scheme

[Matthew77]

you have got to have a van and it needs to be reliable, in order to get you and your tools to work!

in the second year of trading i would not buy a new van, or lease,
look for a good quality second hand van from a dealership,
circa £5000, buy it on hp, pay for it over 3 years, about £150 per month,
all you need to worry about is the £150 per month, and yes its deductable.

this way you are not out of pocket have a nice van, and in year 5 when you are turning over £50,000 plus look at buying a new van.

imo.

Hi Dagger

could you pls explain how to work out how much money is deductable is it the whole amount say £5000 is deductable off the profit so say I earn £15 000 this year I would only pay tax on £10 000? so therfore saving around 20% of £5,000 in tax?

I was going to do exactly as you quoted in your reply about getting a second hand van for around £5000 from a dealership, then I noticed that with the scrappage scheme some dealerships near me are doing new berlingo vans for around £6000...so was considering that

 

[doug boardley]

Matthew, we don't advocate fiddling the system though:yikes:

 

[Matthew77]

Hi Dagger
could you pls explain how to work out how much money is deductable is it the whole amount say £5000 is deductable off the profit so say I earn £15 000 this year I would only pay tax on £10 000? so therfore saving around 20% of £5,000 in tax?
I was going to do exactly as you quoted in your reply about getting a second hand van for around £5000 from a dealership, then I noticed that with the scrappage scheme some dealerships near me are doing new berlingo vans for around £6000...so was considering that

thanks grumpy I think you've explained my question.

 

[dagger]

Hi Dagger

could you pls explain how to work out how much money is deductable is it the whole amount say £5000 is deductable off the profit so say I earn £15 000 this year I would only pay tax on £10 000? so therfore saving around 20% of £5,000 in tax?

I was going to do exactly as you quoted in your reply about getting a second hand van for around £5000 from a dealership, then I noticed that with the scrappage scheme some dealerships near me are doing new berlingo vans for around £6000...so was considering that

the prices quoted on the forcourt are not what you will pay,
secondly, i am not an accountant, i pay one!

thirdly, dont worry about tax! we all have to pay it!

my point is you own the van so any damage is your own fault and you will not be penalised (you would with a lease)
it only costs 150 per month, and you get a good quality van!!!

you are only in year two so chances are you have not even earned enough after expenses to pay any tax, in fact they proberbly owe you money!

if you put 20% of every payment into your company bank account, into a high interest savings account you will always have enough money to pay your tax bill, and the accountant!

Good luck

 

[Matthew77]

Matthew, we don't advocate fiddling the system though:yikes:

Of course not, I haven't earned enough yet to even think about fiddling the system

 

[Matthew77]

the prices quoted on the forcourt are not what you will pay,
secondly, i am not an accountant, i pay one!

thirdly, dont worry about tax! we all have to pay it!

my point is you own the van so any damage is your own fault and you will not be penalised (you would with a lease)
it only costs 150 per month, and you get a good quality van!!!

you are only in year two so chances are you have not even earned enough after expenses to pay any tax, in fact they proberbly owe you money!

if you put 20% of every payment into your company bank account, into a high interest savings account you will always have enough money to pay your tax bill, and the accountant!

Good luck

Very good idea ,never thought of that.

 

[doug boardley]

Of course not, I haven't earned enough yet to even think about fiddling the system

just in case you were thinking of getting a pink bow or a poodle

 

[diamondtiling]

Of course not, I haven't earned enough yet to even think about fiddling the system

So when you are earning 100,000 a year will you think about it then???

:smilewinkgrin::lol::smilewinkgrin::lol::smilewinkgrin::lol::smilewinkgrin:

 

[Matthew77]

So when you are earning 100,000

:yikes::yikes::yikes::yikes::yikes::yikes::yikes::yikes::yikes::yikes::yikes:

 

[White Room]

Of course not, I haven't earned enough yet to even think about fiddling the system

Careful guys this on the open forum:ninja: