Van

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Van

    Hi, I am looking to buy a van solely for my rental business,
    I was looking at leasing a van and was wondering about the tax side and if I can claim the amount or is buying outright a better option.
    I am not a Ltd company and do simplified accounts for mileage.
    I would be grateful for any advise or alternative ways.


    Cheers
    Jasonl
    ​​​​​

    ​​

    #2
    Leasing every time - and allocate to the business.

    "If it appreciates, buy it. If it depreciates, rent it"

    Comment


      #3
      Unless you have a huge portfolio or a very unusual business, HMRC isn't going to accept a vehicle as a legitimate business expense for a property investment business.

      They may never notice if you do your own returns, and you can claim the mileage that's solely for the business.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        What would do is 80% business 20% private, if say a van was 200per month could I claim 160 as a expense? Or something else

        Comment


          #5
          The safest thing of all is to simply claim the mileage allowance.

          To claim for a proper split in costs, you might be asked to show mileage records for all your business trips, which should match the proportion claimed.
          You'd also have to log the operating costs if you're going to claim them - fuel, repairs, insurance and tax.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            If you have another car they're more likely to accept the van as solely business use.

            Comment


              #7
              As said unless you have at least 100 properties there is no way the van will be an allowable business expense. Stick to the ~50p/mile allowance.

              Comment


                #8
                As said unless you have at least 100 properties there is no way the van will be an allowable business expense

                You don't need to have 100 properties. It depends on the landlord. If OP is a hand-ons landlord and is doing his own maintenance and refurbishments. Taking building rubbish and furniture to the rubbish tip. Using the van to buy building materials. TRy getting a plasterboard into a family car. Keeping spare items in the van. As long as it can be justified. If OP is using the van for other things, then it creates problems. May be need to create a good log record of mileage.

                My previous car boot was full of tools, plumbing spares, silicone, paint brushes, rollers..... and it over spilled into my home. A van is a great idea for some.

                Even though, I do use builders. I am hands-on to keep my skills sharp.

                The price of used vehicles have shot up. Someone buying a vehicle in 2020, can sell it 2021, for profit.

                Comment


                  #9
                  No way HMRC will do anything that laugh at a van written off to sole-use expenses for one property. They will probably not laugh at 100. The reality of them not laughing (when you are investigated in an audit of your tax affairs) is probably going to be in the many dozens.

                  Comment


                    #10
                    8 years I go I had van solely for rentals and a car for private and a bit of rental and had no probs just wanted to know the situation with leasing.

                    Comment


                      #11
                      Originally posted by jase222 View Post
                      8 years I go I had van solely for rentals and a car for private and a bit of rental and had no probs just wanted to know the situation with leasing.
                      "No probs" in tax affairs usually means you have not been audited yet (or gone to jail/been fined).

                      When you say "no probs" that means you actually cleared with HMRC in writing before putting on your tax return? Post that letter from HMRC here please.

                      Comment


                        #12
                        I've had small vans and successfully written off the cost. Signpainting them was considered wise. However the individual who was the keeper was collared for a taxable benefit because the keeper was allowed to take the van home and use it to get to and from the place where the work was to be undertaken.

                        Comment


                          #13
                          I have a Chartered accountant and he never once said I couldn't, I first bought a small van and then a vw t5 and never said a dickee bird.

                          Comment


                            #14
                            I got called in for a meeting with the tax man years ago and he actually told me to put 100% of van cost to the business as they don't expect any private mileage in a commercial vehicle.
                            A landlord may well need a vehicle to service just one property.

                            Comment


                              #15
                              If OP is so sure, I suggest he/she write to HMRC and ask, and post that response here for everyone to see. That would be a good community service.

                              Comment

                              Latest Activity

                              Collapse

                              • Reply to Will they raise taxes again?
                                by theartfullodger
                                Taxes bound to go up, huge amounts to pay for Covid & BR*X*it. Death & taxes, death & taxes.

                                Holding off working out my position, wishing to remain cheerful for Christmas.

                                Best wishes to all...
                                28-11-2021, 10:45 AM
                              • Will they raise taxes again?
                                by JK0
                                My accountant just finished my 2020/21 tax return, and my income is half of the previous year. I did not think it would be quite that bad. (Half my tenants moved out, and I had a job to replace them. Plus had to get fourteen EICR's!)

                                I'm guessing you guys are in a similar boat. Never mind...
                                27-11-2021, 20:20 PM
                              • Reply to Will they raise taxes again?
                                by Neelix
                                ^^ please don’t take this the wrong way but £10 k down on what turnover or number of properties?

                                i’ve done a lot of EICRs and remedial work over the last 18 months and a lot of it was because properties hadn’t been inspected and some were just dangerous....
                                28-11-2021, 10:29 AM
                              • Reply to Will they raise taxes again?
                                by jpkeates
                                I'm about £10k down and it's mostly electrical work.

                                I can't see this government putting up taxes anymore before the next election, although there's nothing to say that they won't figure out how to tax landlords more specifically - there's few votes lost there.

                                My candidate...
                                28-11-2021, 10:07 AM
                              • Reply to Will they raise taxes again?
                                by Neelix
                                That's a lots of unsatisfactory EICR's and remedial work - so not annual costs!...
                                28-11-2021, 09:00 AM
                              • Reply to Will they raise taxes again?
                                by Neelix
                                Wow.

                                So that must be lots of unsatisfactory reports and lots of remedial work.

                                so not annual Costa...
                                28-11-2021, 08:31 AM
                              • Reply to Will they raise taxes again?
                                by jpucng62
                                Clearly you were a bit behind on your electrical work!...
                                28-11-2021, 06:58 AM
                              • Reply to Will they raise taxes again?
                                by JK0
                                The EICR's cost around £12k in total....
                                27-11-2021, 22:48 PM
                              • Reply to Will they raise taxes again?
                                by Neelix
                                14 EICRs isn’t going to dent the income from 14 properties

                                its the void periods that cost you...
                                27-11-2021, 22:37 PM
                              • Corporation Tax
                                by Thurrock1
                                Hi, Please can someone tell me if Corporation Tax only becomes payable to the IR on sale of an asset.
                                My husband is a director of a property development company - there are only 3 directors.
                                He wants to leave and there is no communication with the other directors and it is difficult to get...
                                23-11-2021, 19:15 PM
                              Working...
                              X