Start up loan for van.

[JEREMY HAWKE]

I wish you said all this in the beginning

Forget about buying an expensive van that's the biggest waste of money in your business
Start with a 15 yo Berlingo or Pug Partner for £1000 and they are a lot more reliable than the new vans.

I would say what you are focusing on here is an unimportant part of the business it's not like your van is going to be on the motorway 12 hours a day

 

[fisicx]

I have a friend who is a building surveyor. He uses a secondhand SUV. I asked him and he paid £3k about 5 years ago. Before this he used a Volvo estate. Both used to transport children, rubbish for the tip, shopping and so on. He can’t see the point of buying a van.

 

[DWS]

I have a friend who is a building surveyor. He uses a secondhand SUV. I asked him and he paid £3k about 5 years ago. Before this he used a Volvo estate. Both used to transport children, rubbish for the tip, shopping and so on. He can’t see the point of buying a van.

Tax Relief??
Being able to possibly get 100% tax relief on a commercial vehicle against maybe only getting 6% on a car may make a big difference especially to a start up business.

 

[Paul Kelly ICHYB]

was lucky enough to speak with an impartial advisor regarding startups and unfortunately this is an almost verbatim quite from him... "Most businesses have a cash injection from family

Whilst that advisor might be nice and experienced, I would not say you were lucky to get that advice. They are sooooooo wrong. Most (micro/self employed businesses are bootstrapped or use quick, convenient funding like credit cards (not always wise) and personal loans. Family is up there.

Can't you do surveying in a car?

Also. If you are not qualified, what work have you already secured?

 

[Paul Kelly ICHYB]

Tax Relief??

Another business misconception. Spend thousands to get a write off.

 

[DWS]

Another business misconception. Spend thousands to get a write off.

Not at all, it’s called business planning!
If you need a vehicle to carry out your work then buy one that is going to bring the most benefit.
Not a misconception just basic common sense!

 

[RKTS46]

Whilst that advisor might be nice and experienced, I would not say you were lucky to get that advice. They are sooooooo wrong. Most (micro/self employed businesses are bootstrapped or use quick, convenient funding like credit cards (not always wise) and personal loans. Family is up there.

Can't you do surveying in a car?

Also. If you are not qualified, what work have you already secured?

Definitely can do surveying in a car, it's just that my car is not in the best condition and is quite old. This is a bad look for customers as it looks unprofessional. I did a bit of surveying with my previous company but the company cars could not be more than two years old and had to be electric or hybrid. Mine is neither and in all honesty will put potential customers off.
If I was to get a van, I would get something where the design hasn't changed much in the last 10 years eg Courier and buy a discreet numberplate, one that is obviously not linked to the year of manufacture so it's not obvious the van isnt new(ish).
The other option is of course to hire, which looking at my options openly, is going to be the best/most realistic option.
What I have been doing previously is parking away from site and then walking up so that customers/clients don't see my car, which has always worked a treat but I am afraid of the one time it doesn't.
Without going into too much detail my car, whilst perfectly safe, had an argument with a fixed structure a while ago and cosmetically damaged. I was on such low wages in my last job I couldn't afford to have it fixed. I'm determined to make this work and am ok with the struggle that will come with startup.

 

[JEREMY HAWKE]

Another business misconception. Spend thousands to get a write off.

Agree Not relevant when your keeping the costs down and spending 1K as opposed to 50k

The objective here is to help the op start up on a shoestring and not to furnish hin with tax advantages on major investments that are not required

 

[fisicx]

@RKTS46 - trade in your car for something less knackered and use that.

If you don’t need a van don’t waste all that money.

 

[DWS]

Agree Not relevant when your keeping the costs down and spending 1K as opposed to 50k

The objective here is to help the op start up on a shoestring and not to furnish hin with tax advantages on major investments that are not required

How is it not relevant?
As you say the objective is to help the op to start up on a shoestring!
So spend £3k and get 100% tax relief or spend £3k and get 6% tax relief?

 

[Chris Ashdown]

Most startups totally overstate their potential earnings in the first year, When you are working you are not advertising or quoting for jobs. Transport just needs to be clean and small enough to carry your tools of which I guess would include a extending ladder that also turns into a stepladder
Play safe a just hire a small van for the first few months (you get lower rates if you commit to a few months, in many cases) and see how successful you are and then with some knowledge of being freelance you will better understand your needs

 

[Paul Kelly ICHYB]

So spend £3k and get 100% tax relief or spend £3k and get 6% tax relief?

Please explain this? I do not understand and, if missing an opportunity myself, want to take advantage of any benefit (as we all do).

 

[Lucan Unlordly]

I wish you said all this in the beginning

I think this threads gone a bit wonky? We've got 2 people, the opening poster who said he's doing Electrical Contracting so probably needs a van to carry conduit and rolls of cable, ladders, lights, etc., and a late to the party poster who's doing Surveying where a car, a clipboard and an ear to keep a pencil behind may suffice?

For what it's worth, when it comes to the car or a pristine van argument in terms of presentation, the assumption that you'll have to be parked outside a customers premises as opposed to the other side of the car park or round the corner may lessen the need. Far better to smarten yourself up, branded overalls, clean boots etc.,

 

[DWS]

I think this threads gone a bit wonky? We've got 2 people, the opening poster who said he's doing Electrical Contracting so probably needs a van to carry conduit and rolls of cable, ladders, lights, etc., and a late to the party poster who's doing Surveying where a car, a clipboard and an ear to keep a pencil behind may suffice?

For what it's worth, when it comes to the car or a pristine van argument in terms of presentation, the assumption that you'll have to be parked outside a customers premises as opposed to the other side of the car park or round the corner may lessen the need. Far better to smarten yourself up, branded overalls, clean boots etc.,

Must admit I thought we were still talking about the electrician didn’t realise the thread had been hijacked

 

[DWS]

Please explain this? I do not understand and, if missing an opportunity myself, want to take advantage of any benefit (as we all do).

If you buy a Commercial vehicle then you should be able to claim 100% of the cost through AIA to reduce profits, if you buy a car then this may be as little as 6% in WDA with personal use also needing consideration,.

 

[JEREMY HAWKE]

Must admit I thought we were still talking about the electrician didn’t realise the thread had been hijacked

Tomorrow we will be discussing the best vehicle for a rat catcher and his dog So get thinking about what vehicle you would recommend if you were lucky enough to be in that industry

 

[Buryblue]

Buy a car derived van ie a Toyaota Corrolla estate, No rear seat, plenty of space all the tax benefits and less than £15k for a 18 month old hybrid, You can have the blocked out windows liveried.

 

[Paul Kelly ICHYB]

If you buy a Commercial vehicle then you should be able to claim 100% of the cost through AIA to reduce profits, if you buy a car then this may be as little as 6% in WDA with personal use also needing consideration,.

Gotcha. The caveat on that is that the item must be new/unused, so, for a commercial vehicle, you are looking at £20-30k+, which is out of reach to many startups.

 

[DWS]

Gotcha. The caveat on that is that the item must be new/unused, so, for a commercial vehicle, you are looking at £20-30k+, which is out of reach to many startups.

Where did you get that from?
Because it is totally wrong!

 

[Paul Kelly ICHYB]

Claim capital allowances

Claim capital allowances so your business pays less tax when you buy assets - equipment, fixtures, business cars, plant and machinery, annual investment allowance, first-year allowances.

www.gov.uk

Being a government tax site, it is, of course, as clear as mud.

 

[DWS]

Claim capital allowances

Claim capital allowances so your business pays less tax when you buy assets - equipment, fixtures, business cars, plant and machinery, annual investment allowance, first-year allowances.

www.gov.uk

Being a government tax site, it is, of course, as clear as mud.

I think you are confusing AIA which I mentioned with FYA

 

[Paul Kelly ICHYB]

No, AIA is detailed on that link.

 

[DWS]

No, AIA is detailed on that link.

And where does it say the asset needs to be used or new to claim AIA?

 

[Paul Kelly ICHYB]

That's doing my head in!

I saw it here:

Claim capital allowances

Claim capital allowances so your business pays less tax when you buy assets - equipment, fixtures, business cars, plant and machinery, annual investment allowance, first-year allowances.

www.gov.uk

but that isn't AIA - I will look again later...

I anticipation of being wrong, apologies and thanks for the pointer - you learn every day on UKBF!

 

[Chris Ashdown]

RKTS46 I thought you had to be a member of the relevant association to do house surveys, I know that when I worked as a hydrographic surveyor, I did the work, but all my work was signed off by a RICS member as we worked under his supervision even though he did not actually daily oversea our work. Have you had quotes for professional insurance for this work as I imagine very expensive if a fault later appears​

 

[Simon Scott]

My advice would be to cost in and lease if possible. On that mileage, doesnt really make financial sense but itll defo take away some of the stress. As an individual think about everything involved with your logistics and work out what is best. Some are still offering reasonable rate of excess mileage, (nothing as good as it used to be) so could pull it down a bit a monitor.

I evaluated my works areas then manage to find a room for reasonable pcm. Saved on fuel, time and mileage and then got a cheaper lease. Van lease does certainly take a chunk but i feel like it's one less stress and help me focus and , I think, help me push on with work etc.

I know not all will agree and alot depend of reliability of your contracts etc but is just my thoughts.