Best way to buy pick up truck

frogworlduk

A little help please.
I have a pick up truck that i brought with my own money to use for my business. Brought with personal money, currently just claim the 45ppm. It's slowly falling apart so weighing up the option of buying a new or fairly newish one in the near future.

What would be the best option. Pickup cost 13-14k + vat around there.

I'm not VAT registered ( but very close to it and everything we do, ground work, is for councils so probably should do). Sole trader. Drive around 15-20k a year 100% work. I have 2 cars if i need a personal trip.

I could afford to buy it straight out(just) but a little finance would be great.

Best to register for vat then do capital allowance or just as easy buying and claiming mileage?

Also I don't have an accountant, again probably should!

00ec25

whichever you choose, you will be stuck with it for the duration of your ownership of that truck. You can't change method from year to year.

the choice is one of maths:
simplified expenses gives you a cost of £7,000 at 20k mileage
capital allowances and actual running costs will give you .... actual costs

greyteam1959

@frogworlduk
The last line of your post sums it up nicely...........
A cost to it but it would save you a considerable amount of aggravation dealing with things like this.
Give you more time to do the actual work which obviously is where your skills lie.

James1968

At least by being VAT registered you can charge VAT on the jobs you undertake.

T47lor

Hi there,

Really interesting thread for me as I find myself in a similar position to frogworlduk.

I have never been registered for VAT. And find myself having to buy a new electric taxi.

Cost of this vehicle is £60,000 (including VAT), you would therefore understand that the VAT element of this vehicle is a lot of money.

I have always run my business as a self-employed sole trader and just Completed a tax return in the normal way showing my expenditure and my takings and paying my tax and national insurance based on the calculated profit.

In my particular situation can you tell me is the answer the same as you’ve just given to you frogworldUK And if so would it be possible for somebody to do the calculation for me and tell me whether there’s much difference in continuing as I am already or registering VAT or not.

Sorry to ask for help doing the calculation but I think I must be a bit dense.

00ec25

T47lor wrote: »

Hi there,

Really interesting thread for me as I find myself in a similar position to frogworlduk.

I have never been registered for VAT. And find myself having to buy a new electric taxi.

Cost of this vehicle is £60,000 (including VAT), you would therefore understand that the VAT element of this vehicle is a lot of money.

I have always run my business as a self-employed sole trader and just Completed a tax return in the normal way showing my expenditure and my takings and paying my tax and national insurance based on the calculated profit.

In my particular situation can you tell me is the answer the same as you’ve just given to you frogworldUK And if so would it be possible for somebody to do the calculation for me and tell me whether there’s much difference in continuing as I am already or registering VAT or not.

Sorry to ask for help doing the calculation but I think I must be a bit dense.

what question are you asking?

a) should you be VAT registered?
If not then you cannot claim the VAT on the taxi and your post is null.
If yes, then all your prices just went up by 20% as it is what you sell, not what you buy which matters for VAT. Will your customers stomach a 20% price rise?
As it appears to be a taxi, there are special rules for private hire vehicles.

b) how much VAT can claim on 60k?
Sorry but if you cannot do that level of maths then pay someone to help you.