Vehicle financing

Russ132

Hi All,
I'm a self employed electrician and would like to upgrade my van to a bigger model with the intention keeping it long term, perhaps a lightly used or new one. Can anyone point out the pro's/cons and tax implications of various finance options? Or different approaches I could take to fund the purchase. I'm vat registered by the way.
Cheers,
Russ.

Kurtis_Blue

See your accountant Russ to get water tight advice, he should be able to answer this in an email rather than a charged meeting.

AdrianHi

If it is used purely for business you could lease VAT free and your not tieing up any cash in the vehicle. If you use it for personal use too your into claiming only 50% VAT back and the BIK (benefit in kind) personal tax by which time buying it more likely to work out best by a small margin.
Your accountant will knwo more about your circumstances to advise properly though