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  • Tax

    Buying or leasing a van - tax deductible?

    I am thinking about buying or maybe leasing a new van . Just wondering if this could be tax deductible from the rental business at all ?

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    I can only give you what I do on the advice of my Accountants

    I run a fair size BTL business both in a company name and in my own name

    I run a Landover defender

    If I use it for business in my own name I claim 45P per mile

    If I use my Landover for the Company I charge 45p per mile as a director

    If you run the new van via the company you can not use it for personal use otherwise its taxable

    I think its far easier claiming mileage and drive the car you want to drive with a lot less hassle and complications

    But if your running a company and its vat registered it may work well

    but you need to take accountants advice


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    Learn Change and Adapt ?????


    Hello Pound behind, we are in this same situation and looking to purchase a van, potentially through contract hire. Going to look at a VW transporter today

    Looking in to this ( for 6 hrs yesterday!)  I note that as a sole trader you can claim as a capital allowance and use the AIA (google) over the first or several years. Personal use is ‘restricted’ so you would need to keep a log book . Just waiting for our accountant to get back to me on this point as then in a position to weigh the AIA relief against the 45p per mile route (and s.24 implications)

    If you have a car and do the 45p route you can offset loan Interest on a CAR ... I’m not sure about loan interest on a van but the 45p does need to cover maintenance and repair to a car/van etc. Up until now my accountant has being Using the 45p route thus far.

    Now we need a van. Car rules are different to vans as you are likely already aware.

    With a Ltd co. It’s based on if you are vat registered this is not my area.


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    Thankyou for replies

    With regards to the 45p per mile you allowed to claim, how can this be worked out exactly?

    For example say you make 20 trips a year to your properties how can you keep a viable record of this?

    Also trips to builders merchants etc to buy supplies.

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    Buy a mileage log book and record all your journeys, dates etc and amount of miles, postcodes also if you are very conscientious.

    Miles done in tax year  X 0.45 = deductible expense

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    I keep a log to and from  and the reason and the mileage and any parking fees

    10000 miles a year at 45p

    after that 20p mile I think

    if the property is in your own name

    If your working for your company 45P per mile and any parking fees


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    Learn Change and Adapt ?????

    Brilliant, Thanks for advice. I have never bothered claiming mileage allowance before i guess i have missed out.


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    45 p / Mile up to the first 10,000,   thereafter,  mileage @ 25 pence / mile.

    I refer to all my receipts at end of tax year and calculate the mileage to each store - location.      ( provided you haven't got any personal use items on THAT receipt..

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    Amazingly, you are not allowed to use the £0.45p/£0.25p rule.

    Landlords are specifically excluded. I assume incorporated one's will be different.

    I therefore keep a basic P&L for my cars for the year:

    Servicing £1,000

    Repairs £500

    Road Tax £300

    Insur £500

    Fuel £2,500

    Total miles 10,000

    "Exclusively Property Miles 3,000


    Total cost £3,800

    Property use (30%) £1,140.


    If you are not incorporated I would recommend this method.

    Paul


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    where did you get that from Paul, its Not been the advice of a number of accountants I've spoken with.

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    You are 100% wrong Landlords can claim 45p per mile

    your info is misleading

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    Learn Change and Adapt ?????