commercial vehicles

Hi All

Just set up our own business in the last year and wondering about the above. We are registered for vat and from talking to a few people it seems like the best and cheapest option to go for is a commerical of some type.

Did anybody here also go down this route after setting up?

Need to know what you can actually claim back or write off?

Also does it have to be brand new or can it also be second hand?


Got loads of questions but that should do to start with.

Thanks
James

You can claim back the VAT provided the person selling the van is VAT-registered

Doesn't matter if the vehicle is new or second-hand although if new (ie from garage) then you can be virtually 100% sure that the seller will be VAT registered and so VAT will be charged and therefore will be reclaimable.

You can then get capital allowances on the full (net of VAT) cost of the vehicle. Basically this means you get to write-off the cost of the vehicle in 8 equal instalments over an 8-year period.

HOWEVER if you purchase the vehicle via Finance Lease then you DON'T get capital allowances but can write off the actual finance lease repayments as you incur the cost of them.

You will pay BIK on the vehicle but the amount will be very small, generally speaking