Limited Company Buying a Van

misscl

I have just set up a limited company and trying to understand some of the tax rules. Am I able to buy a van as part of the business (it's a building company) and claim back the full amount? I read something about the AIA (Annual Investment Allowance) but don't fully understand how it works. If the answer is yes, how do I go about doing this?

I am hoping to employ an accountant soon, but it would be very useful if someone can offer advice in the interim.

antrobus

misscl wrote: »

I have just set up a limited company and trying to understand some of the tax rules. Am I able to buy a van as part of the business (it's a building company) and claim back the full amount? I read something about the AIA (Annual Investment Allowance) but don't fully understand how it works. If the answer is yes, how do I go about doing this?...

The answer is 'yes', in that you can claim back the full amount as an allowable deduction against your profits. And you go about it by putting the numbers in the right box on your corporation tax return.

misscl

Thank you. Does it need to purchased using a company bank account (Not yet set up) or could I do it using my personal finances?
Does it need to be from an approved business dealer or could I buy second hand and submit a hand written receipt from the seller?

phill99

misscl wrote: »

I am hoping to employ an accountant soon, but it would be very useful if someone can offer advice in the interim.

Wrong. You need to employ an accountant NOW. Probably the biggest business investment you have made to date and you need to know how to deal with it in for tax purposes.


Well meaning strangers on an internet form are not the way forward.

misscl

Yes I know that, but I don't have the finances until next week to do so.
I thought that rather than sit and wait for a week before I get an accountant in place, I might be able to have a little advice from other kind souls, just to at least get an idea on certain things. Apologies if I have come to the wrong place. I kinda thought that a forum was for well meaning strangers to offer advice, I don't intent to make any major business decisions without proper consultation in the long term, thanks for your advice anyway.

paddyrg

People are just concerned to make sure you don't stitch yourself up as there will be a right and wrong way to do this, and if the difference is several grand you need someone to sue for bad advice!

For instance, it may be that they suggest you register for VAT first, and the status of your building contracts will help decide if that's the best thing for you. Or it might be that there are depreciation questions, or that it's better for you to lease, etc

antrobus

misscl wrote: »

Thank you. Does it need to purchased using a company bank account (Not yet set up) or could I do it using my personal finances?...

You can buy it with your money. You would just be lending the company the cost of the van.

misscl wrote: »

..Does it need to be from an approved business dealer or could I buy second hand and submit a hand written receipt from the seller?

You can buy it from anybody you like. It will help if you have got some kind of dcoumentation supporting the payment.

rhysadams

Defo speak to an accountant, but you could potencially lend the limited company money from personal finances and purchase the van to claim back the tax, etc.