I am looking at buying a small van for my company, and am just wondering what type would hmrc consider a commercial vehicle? I have a couple of choices and it would be soley for company business use only and registered in the company name. My choices are the peugeot partner/citroen berlingo van and the slightly larger peugeot expert/citroen dispatch van.
Any help on this matter would be greatly recieved.
if you are a sole trader you can claim depreciation of its year on year de-Value
you can also claim for all your fuel. servicing, Mot ,oil tyres, insurance etc. you should have a chat to your accountant i am surprised he has not advised you already,
it is very easy to do just enter all the van expenses your weekly outgoings, your accountant will enter the depreciation value on your end of year tax return
i dare say one will be along on here soon
Phil Lightweight Movers
tip: don't insure it for social and domestic pleasure (Business only)
Just had a thought with more than one business vehicle you may need an operators Licence.? find yourself a good accountant and contact the RHA
i see from your website you are now offering a courier service
in the eye's of insurance that is "hire and reward" and can be very expensive you must make it clear to any insurance company what you need the insurance for, road haulage insurance does not cover courier work
not significant until you have a big mishap or get stopped at a ministry of transport road block/check
then its bye van! off to the compound,
the sale's team at my insurance company told me on the phone that i was covered for the purpose of my business, however when the documents came through the certificate said social and domestic pleasure and for the use of business
i sent them straight back and complained, read the small print and make sure you have the right policy most high street insurers won't touch hire and reward, you may have to go through a broker to get the correct cover and of course if its insured for personal use in the eyes of HMRC could be considered a perk and as such could be subject to be taxed.
Seems to me both look commercial and should qualify for Annual Investment Allowance and capital allowances if solely for business use.
The physical aspects of these vans fit the bill as commercial for the purpose of tax relief on the assumption that there would be no form of adaption that would point otherwise. It is what you do with it that is more important and the evidence and reasonableness of what you do with it amounting to business purposes. In this context Phil is correct about insurance cover.
For example - if the company owns the van and you take it home daily, assuming that you live away from your depot/office, then the company (assuming the business is a ltd company) would be entitled to Corporation Tax Relief, however there may be a benefit in kind that would be taxable on you as an individual based on "home to work" travel and use of the van. This very much depends on what normal use amounts to - If made available to you to be on call for emergency breakdowns of if normal use is not home to work i.e. journeys to customers from home or suppliers then any private use may be insignificant and not incur a benefit in kind for tax purposes.
There are special rules if you are a director and if your documentation such as employment or directors service contracts, insurance and mileage records don't stack up then although the company will probably get the relief there may be a whole bunch of other issues to deal with.
Phil is right once again - this is what accountants should be doing for you.
Can i just echo phil and Barrys comments.
This is a question you should be seeking professional advice on and i would suggest if you have not already engaged an accountant you do so in the not to distant future
Good look with it .
Thanks for all your replies guys, most helpful.
With reference to travelling to and from work personal use my company is actually based at home at present to keep costs down as dont need to be renting office space as yet. Due to the highly competitive courier market at present i am unsure as to whether i will be delving into this or not as the core of my business is in temporary driver supply so the van would be used soley in the nature of getting to my clients premises when a driver is requested and back to base at home. Just to add i already have an accountant but i am becoming disgruntled with them at the moment as they are not very forward when i ask them for advice. They are also running my payroll at a fee which i feel is expensive. I would like to be able to run my own but im not sure how easy or hard this would be. Also i am unsure of what my accountant will be charging for doing the accounts as a company rather than as sole trader. Once again, not giving me actual figures or even a rough estimate. I am running accounts on sage now.
I emailed them the same initial query as i posted on here the same day and i am still awaiting their response!!!!!!!! Thank you for your swift comments.
It sounds to me as though you are not getting both the advice and service you would expect from your accountant.I and i am sure Barry would be delighted to provide you with a detailed quote for the services you require.From my side if you want to e mail me on my business e mail address i would be happy to provide a quote.I am not able to speak for Barry but i am sure if you was to e mail him at his business e mail address he would also be happy to provide you with a competative quote.
I from my side believe it is key for any business to have an accountant who will provide a personal and proactive service to all clients no matter how big or small.As with your business an accontancy practise grows by providing a service in a timely and cost effective manner