lease vans

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Thinking of leasing a van I've been told the monthly payment is 100℅ tax deductable

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By DMGbus
19th May 2015 08:34

A cost deducted off profits

Assuming that the van is 100% used for business purposes then all of the leasing costs are deducted off profits (not deducted off tax due **).

If instead the van were instead to be bought outright or on loan/HP finance then the cost price of the van can be deducted off profits in the year of purchase (tax relief upfront rather than spread over a number of years as is the case with leasing).

** How much the tax bill drops will depend upon the tax rates applicable, eg. 20% if a Ltd Co (Corporation Tax) or different rates if an individual (ie. Income Tax at 20%, 40% or 45% plus class 4 NIC at 2% or 9%).

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By JCresswellTax
19th May 2015 09:47

@ Jessie8

Is that a question or a piece of breaking news?

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Replying to scalloway:
By mrme89
19th May 2015 09:51

Haha

JCresswellTax wrote:

Is that a question or a piece of breaking news?

 

Maybe when they heard it they thought 'best inform the accountants'.

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Replying to Matrix:
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By Jessie8
19th May 2015 13:46

Thank you for your help

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Replying to scalloway:
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By Jessie8
19th May 2015 13:44

Hi
Thank you for your help
 

Hi

Thank you for your help

 

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By User deleted
19th May 2015 09:59

?

The monthly payment is most definitely NOT 100% deductible for tax

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By User deleted
19th May 2015 10:03

Although..

Although if you buy a trailer by the sea and proceed to sell your dreams to me - that is 100% deductible

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