Purchase of a Vans as sole trader

Hi, I am a sole trader self-employed. I would like to buy a Vans to use only for my business. I would pay the van 50% cash from my business and 50% from bank loan with 60 months instalments (to repay from my business). What is the correct method of accountancy in order to claim the full cost of the vans during the next 60 months and the other cost connected to the van such a mot, service, repair but not mileages. Thank you very much

Hi,
 

Buying vehicles.  If you use traditional accounting and buy a vehicle for your business, you can claim this as a capital allowance.  If you use cash basis accounting and buy a car for your business, claim this as a capital allowance as long as you’re not using simplified expenses.  For all other types of vehicle, claim them as allowable expenses.  See link: Expenses if you're self-employed   .  Thank you.

Hi, Thank you for your reply. If I buy a van to use only for my business, Is it possible for me to keep cash basis accountancy (not simplify) but not treat the vans as capital allowance. Instead, claiming the total cost of the van in the tax period olus all the running cost and maintenance cost such as Fuel, Mot, tax disc, service ect.? thank you M

Hi,

As you are using the cash basis, you cannot claim capital allowances if you are using simplified expenses for claiming against your car.

See guidance here.

Cash basis

Thank you.

Good evening, because I had no history in the company, I bought a van that I use exclusively for the business, paying monthly installments, but with personal financing. Can I declare this installment as an expense? Also, due to the lack of the company's history, I also have a personal loan that I transferred to the business account in order to be able to support expenses until I started collecting invoices from clients to the company's account. Same question, can I declare this monthly installment as an expense? I mention that I want to know if I can report those installments as expenses, to Universal Credit, where I have to report monthly income and expenses. Thank in advance. Kind Regards. Marius.

Hi MariusMRS,
Please refer to guidance at Expenses if you're self-employed
Thank you.

Hello, I am a sole trader completing my self assessment tax return for 2022-23 and I use cash accounting. I bought a van during this period which is used for both business and personal use (at a 50:50 split). Assuming that I am not using simplified expenses, should I include half of the cost of buying the vehicle as a capital allowance? If so, does it come under the Annual Investment Allowance (AIA)? Thanks, Ed

I bought a van (£16000) in 22-23 with £3000 cash deposit and £13000 personal loan. I am a sole trader using cash basis accounts, Do i put this as an allowable expense(along with materials etc)? I plan to Claim (£3000 deposit + £13000 loan + £3200 loan interest). Is this correct? If I do this I guess I do not claim any future loan repayments as expenses. Any help would be most appreciated, thanks.

Hi, I purchased a van for £15k in Aug 2023 as a sole trader NOT using simplified expenses while waiting for decision on a grant application we had made to our local council due to the introduction of a Clean Air Zone. We received the grant £4k (approx) - how do I account for it and over how many years is it an asset? Thank you

If I buy a van for £15000 and pay £7000 deposit, the rest on finance, how much of that can I claim on this coming tax return? Can I claim the whole £15000? Can I claim for the interest on the loan? And is it under allowable expenses or capital allowance?

Hi EdThornton,
Yes, you can.  
Have a look at
Expenses if you're self-employed
and
Tax reliefs and allowances for businesses, employers and the self-employed
for some more information.
Thank you.

Hi 000Hurrell,

You can see guidance here:

Expenses if you're self-employed

Thank you.

Hi Gill,

BIM40451 provides advice on financial assistance in the form of grants. 

BIM40451 - Specific receipts: grants and subsidies

Grants which meet capital expenditure are normally not trading receipts. A capital grant reduces any qualifying capital expenditure for capital allowance purposes.  

CA14100 has guidance on the rules for contributions receieved.

CA14100 - General: Contributions: General rule about contributions received

You can find guidance on how grants are set against capital expenditure for chargeable gains purposes at CG15288.

CG15288 - Expenditure: reimbursements, grants etc out of public money

Thank you.

Oh my goodness. that is an awful lot of links! Are you not able to just provide information based on my specific circumstances? If not, can I get that anywhere else eg business support area if it exists? I don't have an accountant. Thank you

Hi Fordy80,
It depends on the method of accountng you are using - please refer to Expenses if you're self-employed andhttps://www.gov.uk/capital-allowances
Thank you.

Hi,

You will need to contact our Self Assessment team.

Self Assessment tax returns

Self Assessment: general enquiries

Thank you.