Tax relief on a work van.

Matt5464

Hi.  I'm hoping someone here can help me understand how buying a van for work will impact my tax bill. 

I work in the Construction industry and pay tax on my weekly earnings @ 20%. It is my understanding that if I buy a van, the cost of the van is 100% tax-deductible.

Does this mean that  If I spend £30,000 on a van and  I have earned £45,000 that year (paying £9,000 in tax) that when I put in my accounts, I can subtract £42,750  (£30,000 for the van plus my tax-free allowance of £12,750) from my £45,000 earnings.  Leaving a taxable amount of £2,250?

If anyone can let me know if my understand of how this works is correct, or not.  I'd appreciate it.

Thanks

Jeremy535897

The basic answer is yes, but if you earn £45,000 a year gross, I would expect you to have expenses that you can reduce that amount by (fuel for your vehicle, motor insurance, road fund licence, servicing and repairs, business insurance, use of home, tools, office and computer costs, telephone etc) that would be more than £2,250. You should also note that if there is any private use of the van, that reduces the amount you can claim on it.