Hi you mentioned in this video if you already own a van and start a business you can still claim tax relief ? As a sole trader using cash basis accounting how does this work?

Correct me if I'm wrong, I thought there was no VAT on vans?

@HeelanAssociates

7 күн бұрын

Normally on second hand ones there won’t be (depends who / how sold) but normally will be on new ones.

I’m starting up a small business, self employed no vat, and I’ve just bought a second hand van and I heard that I can claim 20% each year over 5 years on the cost of my van (capital allowance?), as I’m not going to earn enough money in my opening year to benefit from 100% of the cost of my van off my tax bill, thanks

@HeelanAssociates

5 ай бұрын

You might still be able to use the 100%, as you could take any unused loss forward into next year. This might still get you the tax relief quicker. Whether this is better though depends on your total income level for the year.

My case is a bit unusual, i work an hour and a halfs drive from where i live, i work 6 days a week and long hours so i prefer to stay overnight next to the place i work and only go home the night before my day off. I would buy a van to make into a bit of a camper, but also it would be for my work gear and hauling around the odd bits and bobs for work. I would keep the van/camper for at least 3 years and look to change it with the same kind of thing. Do you think i could still claim for the cost of the van, which would be around 15k. Thank you, i really found this video informative, but i cant find any details on my scenario anywhere. Thanks!!

Hey guys I’m a musician who’s a sole trader who only drives a car could you guys expand on the car purchase tax relief you mentioned? I think I’ve got my head around day to day expenses and running costs but purchase has me stumped!

@HeelanAssociates

3 ай бұрын

We will add this one to the video list ‘to do’. It’s not a simple one to do so never seems to make the top of the list 😃

You sent me to this video from a comment i made on anothr of your videos. You said you cant claim caputal allowance when using cash basis...but what about claiming the 18% per year under plant and machinery option using cash basis ?

@HeelanAssociates

3 ай бұрын

You don’t usually claim the 18% on p&m when using cash basis. This is rarely used regardless for P&m because you will only use if forced to due to restrictions. Most time you will claim Annual Investment Allowance which is 100% in year one, which is equivalent to how the cash basis deals it by expensing the whole cost in that year.

what then happens if you use a van you've claimed total value of in a px for a newer one? Do you then have to note the px price as income or can you just claim the new van total as well?

@HeelanAssociates

2 ай бұрын

If you are using the cash basis effectively yea you’d have ‘income’ of the px and expense of the new one, presuming ‘usual’ qualifying conditions are met.

Hi. Can I choose a fixed percentage of the van's costs (including initial purchase of the van) and deduct against tax? And if I do, can I ammend it each year if required? Thanks, I love your videos!

@HeelanAssociates

Сағат бұрын

This may help SELF-EMPLOYED MOTOR EXPENSES EXPLAINED! kzread.info/dash/bejne/goSi3LCvfNOZm5s.html You have to treat the vehicle same way each year.

Hi, can you actually go back and amend a self-assessment tax return to add a professional fee that you missed out? Would you recommend doing that? Many thanks

@HeelanAssociates

4 ай бұрын

You have around 12 months to amend online, so it’s usually totally fine to do this.

@lathankyparanchothy7106

4 ай бұрын

@HeelanAssociates Thank you very much

Hi, I am a sole trader, and I am looking to purchase a second hand van today from a private seller. The van cost is £6000 (no VAT) . Do I need to pay it via bank transfer so as the transaction can be traced - and also, do I need to ask the seller for a receipt/invoice? And from what I understand, I can literally just add the full £6000 as a business expense for this tax year. Is that correct?

@HeelanAssociates

4 ай бұрын

It’s all about ‘records’. Bank transfer and receipt is obviously a great method but as long as you evidence it in case of inspection it’s fine.

@jackhopkins9618

4 ай бұрын

thannks, I ended up buying through a dealer so have a receipt and all tracable via bank transfer. How do I claim this on my tax return in april? Where do I put the £7500 van price? I was told by a friend of mine who does accounting to put any longer term investments generally over £100 as capital allowances (van, tools, etc). Is this right? and where do enter these figures on the tax return?@@HeelanAssociates

What if you give the van away for free because it is broken

@HeelanAssociates

3 ай бұрын

Presuming you mean after you’ve claimed tax relief, you’d retain proof and that would be it. If there was truly no value there is no adjustment. This can happen if say it got wrote off and for some reason insurance didn’t pay out.

Hi, can you do one on leasing an EV, Self Employed.

@HeelanAssociates

5 ай бұрын

Yes certainly could. Similar rules actually but more complicated because of being a car.

Can I get a personal loan to buy a van as a sole trader, the bank says I cannot

@HeelanAssociates

Ай бұрын

Sounds like the bank getting confused or talking about their specific product. As a sole trader the loan you obtain is linked to you either way.

@lrolo8974

Ай бұрын

@@HeelanAssociates as I was going through the process, it says ‘this loan cannot be used for business purposes’ with it being a work van therefore a business.