Tax relife on a new van?

nelly_2

Whats the score, is there a set percentage or is to do with the value of the van?

WHA

You get 50% allowance of its cost to set against your taxable income this year, then 25% of the remaining 50% next year, and 25% of the remaining 37.5% the year after, and on it goes. The value of the van doesn't matter.

So if the van costs £10,000, it reduces your tax bill by £1,500 in the year of purchase (22% tax, 8% NIC totals 30% on the allowance of £5,000).

The second year, it reduces your tax bill by £375,
The third year, by £281, and so on, until you sell or scrap it

All assuming your taxable profits are within the basic rate tax band - i.e. roughly £7,000 to £38,000 p.a.

nelly_2

thanks wha

how does it pan out if your leasing one for say 50 quid a week?