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Claiming Tax Back Via Vehicle Purchase

Discussion in 'General Business Forum' started by Gavin46, Feb 19, 2012.

  1. Gavin46

    Gavin46 UKBF Newcomer Free Member

    Posts: 15 Likes: 0
    Buying a van for my business,its going to be used only for business and not for private use,For example if the vehicle i purchased was £15000,and i got a personnel loan of £10000,what am i allowed to claim against tax,the loan i was going to apply for was a £10000 loan over a 5 year period which works out at £200 per month,first question is can i claim the £200 per month against tax or only part or percentage per year,can i also claim the vehicle for depreciation each year,is the £5000 that i put in my self just seen as a asset in the business.
    Any help or advice would be great.
    Many thanks
    Posted: Feb 19, 2012 By: Gavin46 Member since: Sep 2, 2008
  2. Truemanbrown

    Truemanbrown UKBF Newcomer Free Member

    Posts: 897 Likes: 180
    In the accounts, the van will be shown as a fixed asset in the Balance Sheet and depreciation taken to the profit and loss account.

    When you come to do your Tax Return, the depreciation is added back because it is not an allowable expense.

    Instead, you would claim a capital allowance for the van. This should be Annual Investment Allowance whereby you can claim 100% of the purchase price in the YEAR of purchase.

    With respect to the loan repayment, you can only reclaim the interest element of the loan!
    Posted: Feb 19, 2012 By: Truemanbrown Member since: Jul 23, 2010