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130% Super Deduction & vans with personal use

Is the super deduction available, albeit with an adjustment for personal use?

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It looks like a ltd company will be able to claim a 130% super deduction on vans purchased.

Would I be correct in saying that, where an element of personal use is involved, the super deduction can still be applied, albeit an adjustment would need to be made to reflect the personal usage?

In a hypothetical scenario, would this mean that a van with 20% personal usage would qualify for a 104% year one allowance?

Of course, the super deduction will only be available where such a van is new.

Replies (8)

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Stepurhan
By stepurhan
04th Mar 2021 08:32

Personal use adjustments tend to apply to self-employments, not companies.

In companies you get benefit in kind instead.

Thanks (2)
By Duggimon
04th Mar 2021 08:46

Agreed, either the company owns the van or it doesn't, a personal use adjustment is nonsense.

Thanks (1)
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By w8land
04th Mar 2021 09:18

Thanks for the responses. Obviously, I'm no accountant and will be securing the services of one.

Just that my companies first sale isn't expected until May so, given that I have some time, I'd rather speak to potential accountants in person when fear of covid subsides a little more and restrictions ease.

So it looks like I should be asking him, or her, more about the option of the £3,490 benefit in kind and £666 fuel benefit charge.

I'd guess this should beat using a personally owned van and going for the 45p mileage allowance route - in particular if it's a higher valued van.

Thanks again.

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Replying to w8land:
Stepurhan
By stepurhan
04th Mar 2021 09:43

Possibly.

An accountant might also advise that you should not be operating through a company at all. Not enough information here to confirm that Ronan, but you might find that you have made an expensive mistake already. Remote meetings are hardly difficult with modern technology, so waiting just doesn't make sense to me.

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Replying to w8land:
By Duggimon
04th Mar 2021 09:42

It's £3,500 and £669 in 2021/22 but yes, I would expect that for a Ltd company requiring a van, buying with the super deduction and taking the hit on the BIK will work out better, though your accountant when you get one will be able to give you a run down on the actual overall difference to you, based on anticipated levels of trade.

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Replying to Duggimon:
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By paul.benny
04th Mar 2021 10:21

Also worth checking that your van actually is a van in HMRC's eyes for both bik and VAT purposes.

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Replying to paul.benny:
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By w8land
04th Mar 2021 10:32

Thanks for the response. Yeah, it definitely will be. It's a gym equipment retail business so the number one criteria in van choice is going to be a very high payload.

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By petercooperuk
04th Mar 2021 14:02

The private use of the van is treated as part of your remuneration and machinery provided for even the private use of employees is considered wholly and exclusively for the purposes of the trade so the full deduction should prove fine.

Just to add a fun point to the thread, if you think you could cope with the range of a 100% electric powered van, as of the new tax year the van benefit charge will be zero. So the company could, in theory, buy a 100% electric van, and supply it to you even for 100% private use with no BIK at all (in the 2021-22 tax year, at least). Maybe this won't be appropriate at your payload, but the electric vans I've looked at have been reasonably impressive, though pricey.

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