Should I buy a van with VAT?

[Gaz92552]

Im working self employed on site but am looking to get my own work as well. I’m looking to get a van as a car just isn’t practical enough. Could anyone advise me if getting a van with vat rather than without would be better for tax purposes? I’m looking to spend about £3k in total. I don’t have an accountant at the moment so hoping someone here might be able to help.

Thanks

 

[egg67]

When buying a car from a Dealer you still pay VAT, with a van they just show the price without VAT as they all think you are vat Registered so you can claim it back, buy From a private seller and you do not have to pay vat as it has already been paid but you will not get a Warranty

 

[Octopus]

Are you vat registered?

 

[Gaz92552]

I’m not vat registered or Ltd company just sole trader.

 

[Octopus]

Then VAT is applied ........ If the price is plus VAT.

 

[Gaz92552]

Thanks for the reply’s but I don’t think I’ve explained myself clear enough. I just wanted to know when I do a tax return next year would it more beneficial for me to buy a van with vat as opposed to buying private or if it makes no difference as I’m not vat registered. Thanks again

 

[andyb]

It makes no difference Gaz.
Just buy the best van you can for your money vat or no vat.
If van 1 is £3000 with no vat and van 2 is £ 2500 + vat as far as you're concerned thay are both £ 3000.

 

[Deleted member 26818]

It would only make a difference if you were registered for VAT, and on a scheme that allowed you to off set the VAT paid.

 

[Octopus]

So you are wondering how you would off set the capital outlay against your tax ..... So if you paid £3000, you would have about £600 against your tax bill, if you took the whole lot this year.

So if you do spend the £3000 before the end of this tax year, you could reduce your tax liability, paid next year, for this year, by £600

Hope this helps.

 

[Deleted member 26818]

The rules changed a few years ago, allowing us to claim up to £50,000 per item in capital expenditure.

 

[rolyberkin]

You cannot buy a van without VAT if you are not VAT registered.

 

[Deleted member 26818]

If you purchase privately, then there would be no VAT, whether you are registered or not.
As far as I am aware, the only time VAT is not charged, is if you are intending to export, or if the vehicle falls within the rules for mobility allowance.

 

[Deleted member 26818]

If you purchase privately, then there would be no VAT, whether you are registered or not.
As far as I am aware, the only time VAT is not charged from a dealer, is if you are intending to export, or if the vehicle falls within the rules for mobility allowance.

 

[rolyberkin]

Unless you bought from a private seller who was VAT registered!

 

[Deleted member 26818]

Unless you bought from a private seller who was VAT registered!

The point being, VAT will still be charged whether you are registered or not.
It will be for you to claim back, not the person selling.

 

[Gaz92552]

Thanks for all the replies!

 

[rolyberkin]

The OP has stated he is not VAT registered, it makes no difference to his tax affairs if he buys +VAT or inclusive of VAT, he cannot claim any VAT back, unless he registers for VAT which may be a drastic move to claim the VAT on £3k. In short as previously stated there is no benefit either way.

 

[rolyberkin]

This is a bit of an Essex thread!

 

[einstein]

i wouldn't buy a van for £3k, lease or hire one

even if you hired a van from northgate etc the cost of insurance/maintenance is included in some,ends up being just as cheap without the worrys

watch out for thieves

buy a mini mpv

 

[Dave Rudderham]

I'm using a Kia Sorento lol. All rear seats come out giving a decent load space. It also means I don't need a car as well.

This is a bit of an Essex thread!

I just clocked your user name, can't believe I didn't notice it before. I must have been very, very drunk!