Offset cost of van against tax liability?

If I purchase a van as I setup my s/t business can I offset against other income

Didn't find your answer?

Thanks in advance for your help.

I am a high rate tax payer and have just exited my salaried role. I am considering the setting up of a sole trader delivery and van rental business.

The van I am looking to purchase is a second hand VW transporter that has three rear seats. As well as business use i will use the van for occasional personal use.

My specific question is, if I were to purchase the van in full could I offset the full cost of the van against the salary received from my job to reduce my overall tax liability? If the answer to this is yes, how would the taxman view my occasional personal use?

Replies (5)

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By SXGuy
06th Feb 2024 16:35

I'd suggest paying for professional advice because your 2nd question, bares no relation to the first.

Rather than take advice from a bunch of strangers, and given you could probably afford to apoint an accountant for tax planning, that would be my answer.

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Replying to SXGuy:
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By David Ex
06th Feb 2024 16:41

SXGuy wrote:

I'd suggest paying for professional advice because your 2nd question, bares no relation to the first.

Rather than take advice from a bunch of strangers, and given you could probably afford to apoint an accountant for tax planning, that would be my answer.

Agreed.

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By Wanderer
06th Feb 2024 16:42

Bsteve wrote:

The van I am looking to purchase is a second hand VW transporter that has three rear seats. As well as business use i will use the van for occasional personal use.

Possibly not even a van for tax purposes.

You really should seek proper, paid for, advice.

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RLI
By lionofludesch
06th Feb 2024 16:54

Are there side windows behind the driver? Were the rear seats factory fitted?

There's a doubt about whether it counts as a van.

But, as others have said, you need proper, tailored advice.

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DougScott
By Dougscott
06th Feb 2024 17:15

Agree with above. There are some potentially complex issues here. Commercial Van or camper van? Trading as self-employed or through a limited company? Turnover of business?

If you want to do things in a tax efficient way get an accountant to advise you - it should save you more than the accountants fees. If you want to avoid earning more in this tax year and probably then get a refund of higher rate tax then at least consider a limited company. Only an accountant armed with all the facts will be able to advise you.

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