Vans- a couple of questions....

[KneesUp]

I didn't realise - until I looked on wiki to found out what SEVEL was called - that Alfa Romeo made a version of the original Ducato. I'd love one of those.

 

[Archie_tect]

Ladies and Gents,

I am buying a Transit van. It will probably be an 18 plate Transit Custom, it'll be a nice one as I don't want to look like White van man! I may at some point soon be starting my own business. But in the first instance it will be private light goods.

Q1= Can anyone suggest good insurance companies?
Q2= If I buy it now just as little old me, can I then put the purchase against a business I haven't yet started at a later date?

1. Use More Than for Business van insurance.
2. You can claim VAT on purchases for 3 months prior to starting business, but watch tax and be wary of claiming use of your house for the business as you may be liable for further tax and even capital gains tax when you sell your house later. Accountant's advice essential, I'd sort one out now so they can save you a lot of hassle later..

 

[bikingdad90]

As an accountant myself I would recommend talking to your Accountant or having a conversation with one as there are many things you need to do and consider when setting up in business as either a sole trader or limited company or what entrepreneurs relief/incorporation relief could be available if you set up as a sole trader and then incorporate at a later date. Not all trade is considered the same trade which can impact on your tax bill as there are restrictions, partially first year trade where you get stung with overlap profit tax (same profit taxed twice over 2 tax years)

If you sell the van to yourself you could also find yourself in a capital gains tax position if your “trading” rather than “employed”.

If you retain ownership of the van there are ways and means of extracting cash from your business/covering business use and getting relief for the decrease in value overtime.

If you make a loss or cease to trade (terminal) you need to be aware of your options as you might be able to get a tax refund against prior years depending on the situation.

In summary, tax doesn’t have to be taxing but speak to an accountant!!!

 

[Dave Davenport]

As far as I can see, I have driven a lwb Transit & it was really nice, the security is something you need to invest in,though I have use of the Peugeot/Citroen/Fiat/Toyota clone which is a horrible pile of unreliable crap, you really dodged a bullet buying a Transit

Are you talking about the 2016 on models, 'cos I'm very happy with my Dispatch and did a fair bit of research before buying it regards reliability etc.

 

[DRM]

Mines a 2015, due for replacement soon, I’m waiting with baited breath as everyone who has the newer version says “there a bit better “ not exactly confidence inspiring

 

[Dave 123]

As an accountant myself I would recommend talking to your Accountant or having a conversation with one as there are many things you need to do and consider when setting up in business as either a sole trader or limited company or what entrepreneurs relief/incorporation relief could be available if you set up as a sole trader and then incorporate at a later date. Not all trade is considered the same trade which can impact on your tax bill as there are restrictions, partially first year trade where you get stung with overlap profit tax (same profit taxed twice over 2 tax years)

If you sell the van to yourself you could also find yourself in a capital gains tax position if your “trading” rather than “employed”.

If you retain ownership of the van there are ways and means of extracting cash from your business/covering business use and getting relief for the decrease in value overtime.

If you make a loss or cease to trade (terminal) you need to be aware of your options as you might be able to get a tax refund against prior years depending on the situation.

In summary, tax doesn’t have to be taxing but speak to an accountant!!!

Straight forward then.....

 

[nickyboy]

Regarding tax...

You cannot offset the full cost of the van against any profits you make. The van is a capital asset and as such, something called "capital allowances" have to be calculated each tax year and are a % of the remaining value

So if you're a sole trader you use those allowances to offset your profits in the same tax year. If you buy the van personally and then use a limited company, you need to sell the van to the company at fair value and use this value for capital allowances purposes

Pretty basic stuff, any high street accountant will be able to help you. Bottom line is yes, you can offset the van costs against profits. But it will be over a number of years

 

[Cuchilo]

Ladies and Gents,

I am buying a Transit van. It will probably be an 18 plate Transit Custom, it'll be a nice one as I don't want to look like White van man! I may at some point soon be starting my own business. But in the first instance it will be private light goods.

Q1= Can anyone suggest good insurance companies?
Q2= If I buy it now just as little old me, can I then put the purchase against a business I haven't yet started at a later date?

not a great start asking for van advice and then alienating 98% of van drivers / owners

 

[slowmotion]

I use Direct line for Van

First year in business will be a eye opener.
You may need an accountant, id advise talking to one..

Good luck, and be savvy, by that i mean dont get realed in by banks and advertising.. They all want your money with little in return.

@screenman will give you some excellent advice.

My van is with Direct Line too. I rate them.