Van or Car?

The advice from your friends is actually pretty sensible. Vans have a number of advantages for tax purposes:

• More relaxed rules with regards to avoiding benefit in kind charges
• Lower benefit in kind charges- both for the provision of the vehicle and fuel
• Any input VAT suffered on its purchase can usually be reclaimed
• Vans should qualify for the Annual Investment Allowance for Capital Allowances purposes

Defining a van can be tricky, as there are different criteria for different areas of tax, but try to stick to the following conditions:

• A vehicle that is not commonly used as a private vehicle and is unsuitable for such use
• A vehicle primarily suited for the transportation of goods- no rear seats/ windows,
• Has a maximum legal laden weight of 3,500kg

Discussing this with an accountant before you make any purchases, could prevent you from losing tax relief and being unable to reclaim VAT.  So if you would like to discuss your vehicle purchases in more depth, please feel free to contact your local TaxAssist Accountant.

 

Date published 5 Dec 2012

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.