lease hire van

[BOB.DOLE]

can i clain the full amount back from the tax man at the end of the year or can i only claim part of it..

 

[Steve]

Park it in disabled spots and you wont claim anything back.

 

[Thermo]

yes its all claimable as its a hire. Same as hiring tools etc. We do it with our van, most cost effective way of doing it!

 

[hermes]

yes its all claimable as its a hire. Same as hiring tools etc. We do it with our van, most cost effective way of doing it!

Short-term view, long term better to buy otrright.

 

[securespark]

That depends on many things.

 

[BOB.DOLE]

yes its all claimable as its a hire. Same as hiring tools etc. We do it with our van, most cost effective way of doing it!

Short-term view, long term better to buy otrright.

i have my own van at the mo but i wanna trade it in for a company car as to look the part whilst dealing with cliants,and helps to get aways with me false blue badges.

 

[Thermo]

yes its all claimable as its a hire. Same as hiring tools etc. We do it with our van, most cost effective way of doing it!

Short-term view, long term better to buy otrright.

Pros and cons of buying outright

you own it
you tax it
only a diminishing amount can be written off each year
its value diminishes as it gets older and so does the capital you invested in it
you pay for the repairs on it
you mot it
your capital is tied up in it until you sell it on
you can do what you want with it
no monthly payments but its value goes down

Pros and cons of lease hire

your limited on the mileage (unless mileage is not a problem ive got a 10000 limit on mine per year ill do no where near that)
you dont own it
you can do what you want with it ie rack it out, signwriting etc
its covered by the warranty for the term of the lease so no repair bills
no need to mot it as its brand new and exempt from an mot for the 3 years of the lease
they tax it
all the costs can be written off
you hand it back after 3 years so you have to strip it out of your stuff
you hand it back after 3 years and get another new one
you dont have to faff about selling it at the end of 3 years
you have the capital sitting in your bank, not depreciating in value
you make a payment every month your commited to.

So whats the long term benefit then?

 

[WoodYouLike]

So whats the long term benefit then?

We had the same discussion with a competitor-friend on this, he insisted on buying his van, we prefer lease (you're list is spot on). His agrement: I own the van, it's MINE. (Between 'the ears' argument I call that). Until his van broke-down several times in a short period and to top it of a small accident reducing it's value to almost nothing after owning it just for 3 years. He's leasing now

 

[noseall]

leasing is ok while your earning. if you take 4 weeks off a year there is dead money to pay out.

 

[WoodYouLike]

leasing is ok while your earning. if you take 4 weeks off a year there is dead money to pay out.

Beg to differ on this, specially on 'the dead money to pay out' when you're on a break. That counts for everything, innit - rent of shop/workshop/office - wages - business rates - insurance etc? Even if you buy your van, you have to attribute costs of the van on a monthly base (if you do accounting properly), so can't see the difference in this.

 

[noseall]

yes dead money applies to everything as well as the van. for some self employed people the van IS the main cost.

if you have to take a prolonged period off work it can be a pain in the *ss

 

[WoodYouLike]

Sorry noseall, but I don't really agree with your line of thoughts. Could be I'm a real number-cruncher, but as you say a lot of costs are fixed costs (in any company, self-employed or working owners - partners).
In order to 'cater' for those costs while you're on a break (or when the company is closed for the holidays), you need to make reservations for those (any company again).
Same goes for fixed costs when you're having a slow period.

I know, I'm a number-cruncher (and my accountant 'loves' me )

 

[noseall]

generally speaking, if you are a one man band, and off work for whatever reason, the van can be the only idle (business related) outlay.

 

[WoodYouLike]

Well, if you sign-write it, it also becomes a mobile billboard and never idle
No pun intended, just number-cruncher and two-man/woman-band (and I'm sure being a bookkeeper makes me biased, please don't take offense)

 

[BOB.DOLE]

yes its all claimable as its a hire. Same as hiring tools etc. We do it with our van, most cost effective way of doing it!

Short-term view, long term better to buy otrright.

Pros and cons of buying outright

you own it
you tax it
only a diminishing amount can be written off each year
its value diminishes as it gets older and so does the capital you invested in it
you pay for the repairs on it
you mot it
your capital is tied up in it until you sell it on
you can do what you want with it
no monthly payments but its value goes down

Pros and cons of lease hire

your limited on the mileage (unless mileage is not a problem ive got a 10000 limit on mine per year ill do no where near that)
you dont own it
you can do what you want with it ie rack it out, signwriting etc
its covered by the warranty for the term of the lease so no repair bills
no need to mot it as its brand new and exempt from an mot for the 3 years of the lease
they tax it
all the costs can be written off
you hand it back after 3 years so you have to strip it out of your stuff
you hand it back after 3 years and get another new one
you dont have to faff about selling it at the end of 3 years
you have the capital sitting in your bank, not depreciating in value
you make a payment every month your commited to.

So whats the long term benefit then?

yes but thermo can i claim 100% back end of the tax year on a lease hire van