Sole Trader Van Purchase

Deakon1624

Hi all, apologies if this question has already been asked. I am new here and couldn’t find the answer I wanted so was hoping somebody could help.

I am in full time employment but I am also a sole trader on the side doing jobs on evenings and weekends to make a bit more money.

I complete a self assessment return every year and pay the tax I owe through either PAYE or a one off payment.

I want to buy a van to make working on the weekends etc easier.

However I was hoping somebody could help me out.

Say for arguments sake I earn £30000 pre tax in my employment and I make £2000 profit in my self employment.

If I was to buy a van for £4000 would I be able to claim anything back for the purchase as I would be making a £2000 loss in my self employment?

Would I get some back, all of it back or none of it back?

Hope this makes sense and thanks in advance.

Deakon

00ec25

Deakon1624 wrote: »

Hi all, apologies if this question has already been asked.

yes, it has

https://forums.moneysavingexpert.com/discussion/5667907/sole-trader-how-to-account-for-new-van-purchase


note carefully - as explained in the links, you may need to adjust your usage claim for a private use element, although from what you say about having a job I assume this is not your only vehicle owned, so may be a convincing case to say the van has 100% business use only

Pennywise

What/you you claim will also depend on whether you're using the normal accounting basis or the simplified cash basis, particularly re options for loss relief arising from claiming all the van purchase costs as you can't claim loss relief against other income (wages) if you're using the cash basis.