Buying a car for a small business

columbo360

Good Afternoon,
My wife runs a small business teaching kids dance classes in schools. Due to the mats and other equipment she has to carry around we could do with a bigger car/van. What elements of this purchase will she be able to claim back? Will she be able to claim back the interest on finance payments? Also does it make any difference as to whether the new vehicle is classed as a commercial vehicle?

Thanks in advance.

Aileen_Una

If I remember correctly (and someone please correct if they know I'm wrong) you cannot reclaim VAT on cars, only vans etc. May be worth bearing in mind.

emmell

Aileen_Una wrote: »

If I remember correctly (and someone please correct if they know I'm wrong) you cannot reclaim VAT on cars, only vans etc. May be worth bearing in mind.

Do you have to be VAT registered to claim it back?
ML.

somech

emmell wrote: »

Do you have to be VAT registered to claim it back?
ML.

pretty sure if your below the vat threshold you cant claim back the vat

atrixblue.-MFR-.

i would recomend (if all works out with vat finance affordability) a VW caddy van 1.9 tdi either the long or short wheel base, they have loads of rear end space side doors (either side on the long wheel base) and good mpg, reliable, comfortable, and even the smallest people can drive them as the seats go forward pretty far, light on the steering.

i found the vauxhall combi van to have a terrible blind spot on them the wing mirrors are too large and blocks visabilty especially if your a short person. not the new new released corsa van havent driven one yet so cant comment but the 55 plate for E.G .

citroen nemo' and the peugeots equivellant (same van different name) isnt very good for large items, uncomfortable seats and your sat very high for a small van with not much in the way of moving the seat adjustment forward. plus if your carting dance mats around the mat will be bigger than the van!!!

vikingaero

As a sole trader she'll be able to put the car/van on the balance sheet as an asset and allow for depreciation etc. Also she'll be able to petrol/diesel, tax, insurance, servicing, tyres, repairs etc.

A van will be cheaper than a car to buy, but generally is more expensive to insure. A car will allow personal use too. She might be better off buying a vehicle that is a car derived van such as a Citroen Berlingo where you have the space of a van, rear seats for personal use, and insurance rating it as a car even with business use.