MattW

My Mum's partner runs an old van for work(builder), and for the umpteenth time it has been broken into, so he is thinking of leasing a Caddy size van so it will go in the garage.

Can anyone tell me what he can offset against tax in terms of the lease cost?. I'm not sure whether he is VAT registered so any implications around that as well.

Any links to cheap van leases appreciated.

Thanks

Butty

iTrader: (2)

Tax wise, he can claim a percentage of the ex VAT lease cost related to the business use against personal use of the van.
Not sure if it applies to vans, but I was advised not to claim 100% on my car lease as it would not be believed by the tax authorities and they would investigate the claim.

If VAT registered then they can claim it is 50% of the lease cost. If maintenance is a separate part of the lease then they can claim 100% of that.

nick

MattW

So assuming he owns a car for private use he can claim 100% of the cost ex vat against tax?

Butty

iTrader: (2)

If the car is used soley for private use then he can't claim at all.

Some of its use has to be business related. The percentage of business mileage against total annual mileage could be the basis of the claim against the lease.
If he's not aware of this kind of thing then I'd really recommend an accountant to make sure he is claiming what he can.

nick

MattW

No the van will be 100% business, he has a car for private use. He has an accountant who is not returning calls at present

scoobynutta555

Handy, given you have 'til the 31st to get your tax in.

simo

Yes & if VAT reg. he can claim that back as well.