Vehicle's & Tax!

[Chipperclown]

Hi All,

 

I would like to know (as my new accountant seems a bit confused as I am now!) can I buy  outright or via a business lease a Ford Ranger as a second vehicle for my business? I am currently running a transit tipper but its a pain for quoting and also not much use on wet grass! My account seems to think this would be classed as a car and therefore not tax deductible, I disagree. I tried to explain that my transit has 7 seats 2 more than the ranger!!! 

 

Has anyone done this?

 

 

[Richard 1234]

Business lease will be tax deductible. It’s a light commercial vehicle. If you use solely for work it will be100% claimable. If not claim a percentage (80 work 20 private as an example)

[kevinjohnsonmbe]

Read this:

 

https://www.gov.uk/capital-allowances/what-you-can-claim-on

 

Then email "accountant" and give him the boot.... 

[spuddog0507]

6 hours ago, Chipperclown said:

Hi All,

 

I would like to know (as my new accountant seems a bit confused as I am now!) can I buy  outright or via a business lease a Ford Ranger as a second vehicle for my business? I am currently running a transit tipper but its a pain for quoting and also not much use on wet grass! My account seems to think this would be classed as a car and therefore not tax deductible, I disagree. I tried to explain that my transit has 7 seats 2 more than the ranger!!! 

 

Has anyone done this?

 

 

I think I would be firing that accountant off, business lease is 100% tax deductible that's why there are so many 4x4 pickups about these days.

[Alycidon]

As long as it can carry over 1050kg ( from memory)  of goods then you should be OK.    BUT in a meeting with my accountant a couple of weeks ago, he told me that the HMRC are kicking off about hi spec pick ups,  this VW Amorak with leather, air con, auto,  etc etc they are currently saying is a car.  

 

So be carefull that you dont spec it to high especially if its a 4 door.  Think the Ford, Isuzu, Mitsu and Toyota are Ok.  

 

A

[woody paul]

You should be able to claim a percentage for use in business, I run a landy 90 along with a 130 as main truck both insured a commercial vehicle.     

As for spec comfort has got nothing to do with them if you are travelling long distances.   

Edited May 21, 2018 by woody paul

[Matthew Storrs]

26 minutes ago, woody paul said:

You should be able to claim a percentage for use in business, I run a landy 90 along with a 130 as main truck both insured a commercial vehicle.     

As for spec comfort has got nothing to do with them if you are travelling long distances.   

I agree, comfort and spec should have nothing to do with it- not all buisnesses are going to want bog basic. The problem that HMRC surely is that people are claiming work trucks when they use them largely for personal use- you could use that argument with anything regardless of spec. Should a web designer also be expected to only use basic spec laptops rather than an Apple Mac? 

Edited May 21, 2018 by Matthew Storrs

[Inoff the Red]

3 hours ago, kevinjohnsonmbe said:

Read this:

 

https://www.gov.uk/capital-allowances/what-you-can-claim-on

 

Then email "accountant" and give him the boot.... 

That's a bit harsh Kev!

HMRC have cottoned on to the fact that motor manufacturers are bringing out luxury versions of their double cab pick ups and exploiting soft tax rules and imho it is a matter of time before they change the rules.

Having said that I don't understand what the accountant's concerns are.

Chipperclown, I presume you are buying the vehicle in your own name as a sole trader and not through a limited company. In any dealings with HMRC, the strength of your arguments depends on the facts. If you can demonstrate use of this vehicle in your business (and it is not just a runaround for the missus to take the kids to school) then I can see no reason why the costs would not be an allowable deduction (and the vat reclaimed). 

 

I have to say though that I groan when I see some of the advertising blurb attached to some car adverts suggesting huge tax savings but normally (in micro dot writing) there will be a disclaimer advising any prospective purchaser to take advice before buying.

I would suggest that any capital purchase should be justified on it's contribution to  business efficiency and not because of some tax saving. I have seen huge amounts wasted over the years on stuff bought "to save tax" that was little more than money down the drain.

[kevinjohnsonmbe]

14 minutes ago, Inoff the Red said:

That's a bit harsh Kev!

HMRC have cottoned on to the fact that motor manufacturers are bringing out luxury versions of their double cab pick ups and exploiting soft tax rules and imho it is a matter of time before they change the rules.

Having said that I don't understand what the accountant's concerns are.

Chipperclown, I presume you are buying the vehicle in your own name as a sole trader and not through a limited company. In any dealings with HMRC, the strength of your arguments depends on the facts. If you can demonstrate use of this vehicle in your business (and it is not just a runaround for the missus to take the kids to school) then I can see no reason why the costs would not be an allowable deduction (and the vat reclaimed). 

 

I have to say though that I groan when I see some of the advertising blurb attached to some car adverts suggesting huge tax savings but normally (in micro dot writing) there will be a disclaimer advising any prospective purchaser to take advice before buying.

I would suggest that any capital purchase should be justified on it's contribution to  business efficiency and not because of some tax saving. I have seen huge amounts wasted over the years on stuff bought "to save tax" that was little more than money down the drain.

A bit rash perhaps, but borne out of 2 personal experiences (1) my first accountant, I had to explain AIA to, they were binned shortly thereafter. (2) a lying LR dealership that sold me a 110 utility as a commercial vehicle whereas it actually turned out to have a chassis number 6 months BEFORE the EU emissions regs required the change to “commercial” - I got caught out on that one. Lesson learnt. 

 

Every day is a school day, but it’s a bit rich if you’re paying professional fees and not getting professional service. 

 

I heard there’s a Bentley 4x4 coming soon.... I SO ‘need’ that for the rugged, reliability and all terrain capability of a woodland management vehicle ?

[Steve Bullman]

speaking from personal experience, bin your accountant as soon as its clear they don't know what they're talking about.  My last account cost me literally thousands over the past few years and i'll never ever see that money back