Discussion
Ok then whilst i still try to work out what i should buy in the van stakes
Sprinter, transit, Vw, citroen or Discovery, L200 pickup
what do you guys reckon the best way to buy on though the business is.
im looking at 10-20k and do have the cash.
which cash its paid for and no worries its an asset if in run short, but i can only put a small part of it against tax each year..
finance hp etc means i can keep plenty of cash in the bank, i can right off all the repayments against tax, but will end up paying a few k in interest ...
Comments ~?
Sprinter, transit, Vw, citroen or Discovery, L200 pickup
what do you guys reckon the best way to buy on though the business is.
im looking at 10-20k and do have the cash.
which cash its paid for and no worries its an asset if in run short, but i can only put a small part of it against tax each year..
finance hp etc means i can keep plenty of cash in the bank, i can right off all the repayments against tax, but will end up paying a few k in interest ...
Comments ~?
looks like im vearing to a new disco commercial at the mo,
its quite a bit bigger inside than the older one and i've been offered quite a good price on an immediate delivery,
i did think about the crew cab things but it is a ltd company purchase and im a bit nervouse about the inland revenue and the vat man changing their mind...
G
its quite a bit bigger inside than the older one and i've been offered quite a good price on an immediate delivery,
i did think about the crew cab things but it is a ltd company purchase and im a bit nervouse about the inland revenue and the vat man changing their mind...
G
I thought that L200s were still commercial vehicles, unless you fitted a truck top, which supposedly means that you can no longer carry a tonne!?
Having said that, I've had several (non-commercial) discoveries and wasn't impressed with L/R.
The L200 seats five, although there's not much room in the back, but my staff like ours and they drive well. My kids like it too, when I borrow it!
Having said that, I've had several (non-commercial) discoveries and wasn't impressed with L/R.
The L200 seats five, although there's not much room in the back, but my staff like ours and they drive well. My kids like it too, when I borrow it!
Commercial Vehicles (as opposed to Motor Cars) are "Plant and Machinery" for tax purposes. In the year of purchase, 40% Capital Allowances can be claimed followed by 25% Writing Down Allowance for each successive year the vehicle is owned by the business. "Owned" means, purchased outright or purchased through normal bank/HP finance deals. Be careful of Finance Leases as they may not allow you to claim the Capital Allowances. In this case the Inland Revenue allow the normal accounting Depreciation charge instead(provided it is reasonable).In addition, vehicles acquired under an Operating Lease/ Rental Agreement (ie not HP or Fianance Lease) remain the property of the Leasing Company and it is they who can claim the allowances, not you.
Benefit in Kind regulations might apply if the business is a limited company and the vehicle is available to a director/employee for private useage. However, the BIK regulations relating to Commercial Vehicles work out far less expensive than those relating to ordinary motor cars.
Finally, for bona fida commercial vehicles, Input VAT can be claimed back on the purchase cost of the vehicle. Only in very rare circumstances can Input VAT be claimed back on the cost of a Motor Car.
Benefit in Kind regulations might apply if the business is a limited company and the vehicle is available to a director/employee for private useage. However, the BIK regulations relating to Commercial Vehicles work out far less expensive than those relating to ordinary motor cars.
Finally, for bona fida commercial vehicles, Input VAT can be claimed back on the purchase cost of the vehicle. Only in very rare circumstances can Input VAT be claimed back on the cost of a Motor Car.
Guy Humpage said:
What is the latest tax situation regarding Pickups?
Are any exempt from car tax still?
If you are claiming your pickup is a commercial vehicle the IR will want you to prove you use it as such. If you just use it to go down Tescos then they'll treat it as a car.
They're more than welcome to come and look in mine. I had cement, tile adhesive, about 50m of sawn timber, all my normal tools and crap and a SCAFFOLD TOWER in it the other day! I had to put most of the tower struts in the cab section. If that is not TRUE commercial use I don't know what is.
How can they easily determine what is true commercial use and what is not. My mate also has a Navara and he uses it daily to commute from his office. He also uses it to collect all the cleaning products for his business centre. Will that surfice (sp?) The fact that it comes in very handy for towing his toys around on a bloody great Brian James trailor is just a side issue
Paul
Traditionally, a pickup truck would normally have been considered to be a commercial vehicle for Capital Allowance purposes. Therefore it would enjoy the higher level of Capital Allowances available to "Plant and Machinery" rather than the restricted level of Capital Allowances applying to "Motor Cars".
Obviously, the term "pickup" now applies to some vehicles which may not be what you would consider to be of a purely "commercial" nature and might probably be more akin to a normal motor car. However, as yet, the Inland Revenue have not really reacted to these new types of vehicles.
If I was claimimg Capital Allowances on one of these more modern "car like" pickups, I would still treat it as pickups have always been treated i.e. as a piece of "Plant and Machinery" and not as a "Motor Car". However , I would adjust the more generous Capital Allowances claimed for any private useage if necessary.
Obviously, the term "pickup" now applies to some vehicles which may not be what you would consider to be of a purely "commercial" nature and might probably be more akin to a normal motor car. However, as yet, the Inland Revenue have not really reacted to these new types of vehicles.
If I was claimimg Capital Allowances on one of these more modern "car like" pickups, I would still treat it as pickups have always been treated i.e. as a piece of "Plant and Machinery" and not as a "Motor Car". However , I would adjust the more generous Capital Allowances claimed for any private useage if necessary.
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