Zanzibar26
Member
£45 mot saving . it’s a no brainer.
£165 actually smart arse.
Van finance
- Thread starter Kasper
- Start date
£165 actually smart arse.
I love all this taxman pays for it,it gets drawn off your accounts over 3 years etc and your tax bill comes down a little but say you spend £20k on a van people make out as tho tax man puts £20k into your account to say there you go son thats for your van you have shelled out,he does pay a little for it il give him that
Rossi46
Private Member
That’s how much they’ve gone up in 4 years. I got mine with 17k on for £14 plus vat. It had £2k spent on it too with other bits and bobs. £24k is a lot of money for a used van. Mental.
D
Deleted member 23452
Guest
It's really not that hard to grasp, but don't take the word of people who've done it, ask your accountant.
You make a pre-tax profit.
You have to pay tax on that profit.
You can avoid giving that money to HMRC by buying a van (or other deductibles).
If you avoid paying HMRC by buying something to use yourself you have gained the use of that money and HMRC has 'lost' it.
If you're struggling with that concept then maybe self-employment or running a business isn't for you because believe me there are a lot more complicated financial/tax matters you need to be aware of.
Oh thanks for that oh mighty one.get over yourself
D
Deleted member 23452
Guest
I'm not being mighty? That information will save someone a fortune if they use it, if not it makes no difference to me.
You were arguing that it wasn't true, but it is and now you're getting p1ssy.
essexandy
The Lake Governor
I had a call from my accountant some years ago, it went something like this; "Andy you've had a really good year and are going to get a big tax bill unless you buy something big for the business. Maybe buy a new van? You can either spend big and have something to show for it or just pay it in tax, your choice." I went and bought a Vito on the last day of the tax year.
Monkey Boy
Well-Known Member
It is not pound for pound though
If you spend £1 it takes 30p off your tax bill, £10 = £3 off then £100 = £30 off and so on £1000 = £300 off but if your profit over £37,501k then £1 spent takes 50p off your bill - is that right?
Depends how high your taxable profit is weather it knocks you back to paying zero tax that year or not but does not mean the whole price of the van is covered
anyway worth knowing if you pay tax on account then buy a van and have zero taxable profits you get a rebate of the tax you paid up front for that year but it catches up with you again and they want double next time round our one after can’t remember
D
Deleted member 23452
Guest
It does get complicated when you drill down but essentially all of the money spent is deductible. As an example (sorry to mention it again @Rossi46
) I paid £11k plus VAT for a brand new vivaro six years ago.The VAT was the deposit so that was claimed back immediately so money out, money back in = £0 cost.
Either pay finance or cash £11k.
The van then depreciates on the books over the time you own it by an average £2,200 pa down to zero. That depreciation is deducted before you pay tax.
All of that money is deductible, so as mentioned before by me and others, the tax man has 'given' me the money for the van.
Up to that point finance, cash, or lease is the same.
On the books my van is now worth £11k - (£2,200 x 6) = -£2,200 so the van is worth nothing essentially.
I can now buy it off of the Ltd co for £100 and do what I want with it. Leave it in the company and have free motoring but pay slightly more tax. Trade it in for another. Or sell it and leave whatever I get for it in the company.
Everyone's circumstances are different. So @owls will buy another because he's young and keen to rule the rendering world.
I'm neither young nor keen to build an empire and I intend to 'retire' in the next few years so I won't buy another van. When I retire I'll shut down the Ltd co and keep the van I reckon.Listen lad,ull know when I grt pissy and that clearly wasn't it,youve had your warning.;-)
D
Deleted member 23452
Guest
Where has anyone said that or anything like it? They haven't have they?
No matter how p1ssy you get, or which way you wriggle, you were wrong to say it's not true that the van is paid for by the tax man.
I don't make the rules, I certainly don't profess to know them in detail. I do however have enough sense to take advice from a professional who does. I pay good money to an accountant (also 100% deductible BTW) so it would be stupid in the extreme to ignore the advice and information they give. Almost as stupid as arguing against something which two minutes on Google or HMRC's web site would show you is true.
I doubt you'll take any notice, but no one explaining this has anything to gain by doing so, nor is it playing "billy big bollox". People putting this sort of information on a trade site like this are simply offering information others may not have, or didn't realise would apply to them. So take a step back and see it for what it is, just free information.
D
Deleted member 23452
Guest
Why don't you take flying fcuk at a rollinhg doughnut you thick c**t. Givingt it the rocky because you're too9 thick to see what people are saying. Go fcuk yourself you utter tool. And you can take your warning, fold it up tight and shove it right up your 4rse you prick.
tapit
Well-Known Member
As I stated YOU pay for the van.
You’ve given a more detailed and dignified post explaining it more than it deserved to be fair, certainly more than I could arsed. It isn’t a case of giving it the big one is it, it’s just stating a fact and how business and future tax planning works and giving a bit of info out from lads that have done it.It does get complicated when you drill down but essentially all of the money spent is deductible. As an example (sorry to mention it again @Rossi46
The VAT was the deposit so that was claimed back immediately so money out, money back in = £0 cost.
Either pay finance or cash £11k.
The van then depreciates on the books over the time you own it by an average £2,200 pa down to zero. That depreciation is deducted before you pay tax.
All of that money is deductible, so as mentioned before by me and others, the tax man has 'given' me the money for the van.
Up to that point finance, cash, or lease is the same.
On the books my van is now worth £11k - (£2,200 x 6) = -£2,200 so the van is worth nothing essentially.
I can now buy it off of the Ltd co for £100 and do what I want with it. Leave it in the company and have free motoring but pay slightly more tax. Trade it in for another. Or sell it and leave whatever I get for it in the company.
Everyone's circumstances are different. So @owls will buy another because he's young and keen to rule the rendering world.
After 10 years on here, I’ve learnt that what ever you write lads will argue you the toss either way on it, even if your in the right,water off a ducks back.
D
Deleted member 23452
Guest
You're quite right of course, I should know better.
Still not sure how any of it was giving it the big one. A six year old Vivaro is hardly an object of envy even in these strange times.
D
Deleted member 23452
Guest
No you didn't. It was eleventy billion pounds and you can stop boasting because the tax man doesn't pay for it. I'm warning you! Don't argue!
(Am I doing this right?
)Dance monkey dance hahaha
Don’t know who you think you are, Coming on here, writing clearly explained and thought out posts, absolute joker.You're quite right of course, I should know better.
Still not sure how any of it was giving it the big one. A six year old Vivaro is hardly an object of envy even in these strange times.
My thoughts exactly,glad somebody else has called him up on it
D
Deleted member 23452
Guest
tapit
Well-Known Member
I am at work but I will explain later how the system operates.You're quite right of course, I should know better.
Still not sure how any of it was giving it the big one. A six year old Vivaro is hardly an object of envy even in these strange times.
hollybank
Private Member
No doubt your tape will come into play.
D
Deleted member 23452
Guest
Unless 'work' refers to you heading up the corporate finance section at a large and reputable firm of accountants, save yourself the bother. I'm all sorted thanks.
As @owls pointed out, you can lead a horse to water but you can't make it brush its teeth.
Now where did that ignore icon go?
Danny
-
My best investment has been a financial advisor and an accountant. Amazing the amount of money they make for me
Stewie03
Well-Known Member
Tbf it was some good clear info from @imago but im a thick c**t and @essexandy breakdown of it in layman's terms was easier for me
D
Deleted member 23452
Guest
Tbf it was some good clear info from @imago but im a thick c**t and @essexandy breakdown of it in layman's terms was easier for me
I realise @essexandy is likely to have an estuarial accent, but in my head he's deep south USA, or like the old bloke in Christine. Just sits beside his lake looking at someone talking, spits his tobacco, then says "That's boolsheyet."
essexandy
The Lake Governor
Have we met?I realise @essexandy is likely to have an estuarial accent, but in my head he's deep south USA, or like the old bloke in Christine. Just sits beside his lake looking at someone talking, spits his tobacco, then says "That's boolsheyet."
essexandy
The Lake Governor
I'm actually sat by my lake enjoying some pâté that has been spread on to a rustic loaf using a spork.I realise @essexandy is likely to have an estuarial accent, but in my head he's deep south USA, or like the old bloke in Christine. Just sits beside his lake looking at someone talking, spits his tobacco, then says "That's boolsheyet."
essexandy
The Lake Governor
I bought the cheapest because most of it will probably be thrown away.
Monkey Boy
Well-Known Member
@Casper can smell food through posted pictures