Buying a van for my small business

[smnpukbmf]

I have a small, non-VAT registered Ltd company. I currently use my own vehicle (and charge the business mileage) but am now ready to get a small van which I think will look more professional!

Am I correct in thinking the process: I would buy a van, the company owns it, the company will pay for insurance, tax, repairs, fuel, etc, etc. I would no longer claim any mileage.

The van would only be used for business (I would continue to use my car for personal use).

Hope I've understood this correctly?

Simon

 

[DontAsk]

I would ask my accountant for the most (tax) efficient way to do it.

 

[JEREMY HAWKE]

Simon I would just buy it /finance it with the company claiming insurance and repairs ect .

Keep it all in the business

 

[MyAccountantOnline]

I have a small, non-VAT registered Ltd company. I currently use my own vehicle (and charge the business mileage) but am now ready to get a small van which I think will look more professional!

Am I correct in thinking the process: I would buy a van, the company owns it, the company will pay for insurance, tax, repairs, fuel, etc, etc. I would no longer claim any mileage.

The van would only be used for business (I would continue to use my car for personal use).

Hope I've understood this correctly?

Simon

Its certainly one option for the company to buy and run the van (I'm assuming when you say 'I' buy the van you mean your limited company).

You do have lots of options though including how to finance the van, whether leasing maybe be better, what fuel type etc and it's really something which is very worthwhile discussing with your accountant.

If you are going to deal with this yourself read up on Capital Allowances and Benefits in kind

 

[JEREMY HAWKE]

You do have lots of options though including how to finance the van, whether leasing maybe be better, what fuel type etc and it's really something which is very worthwhile discussing with your accountant

This is the last thing I would be asking an accountant

I have seen to many poor drivers stranded on a motorway because someone thought it would be a good idea to save a couple of hundred pounds a year

 

[MyAccountantOnline]

This is the last thing I would be asking an accountant

I have seen to many poor drivers stranded on a motorway because someone thought it would be a good idea to save a couple of hundred pounds a year

It’s about being able to make an informed choice knowing the tax consequences of the various options.

 

[DWS]

It’s about being able to make an informed choice knowing the tax consequences of the various options.

Just had a Ltd Company client who bought a lovely new ‘van’ without speaking to me first, this van is now treated as a car for tax purposes so they are looking at a massive BIK next year.
Also payload needs checking if looking to reclaim VAT.

 

[WaveJumper]

Ask the experts as, above your accountant then you can make a proper informed choice. One of which might be why would you want to own outright a depreciating.

 

[JEREMY HAWKE]

Let's remember one thing
We are in business to make money and selecting the correct gear is paramount regardless of its tax classification

Are we here to make money or just avoid tax

 

[DWS]

Are we here to make money or just avoid tax

Well the sensible answer is to make money but also not to pay more tax than is necessary!
What’s the point in making money only to have to pay it out needlessly?

 

[JEREMY HAWKE]

Well the sensible answer is to make money but also not to pay more tax than is necessary!
What’s the point in making money only to have to pay it out needlessly?

Because the wrong vehicle could seriously impact your business . I have no experience of a manufacturing facility but I guess there is often disagreements between accountants and those with a manufacturing role in the company in a similar way to this thread