I currently lease a van under a lease agreement with monthly payments of £300 (including VAT) over a 5 year term from a commercial vehicle company (Volkswagon). The vehicle will be returned to the company after 5 years and a new one then leased out
This van is for 100% business use and is designed for such use
Can I claim this as a business expense on my tax return as a sole trader and if so where would I list it; would it be under Car, van and travel expenses along with diesal/tax/insurance expenditure
I am not registered for VAT as my turnover is below the threshold
The precise box description is "Car, Van and Travel Expenses". The box numbers depend on how and which form you're completing but the regular box is No. 19 on page 2 of the Self Employment Supplementary pages; here :-
If you are completing three line accounts then all of your expenses can go in box 30. These box numbers may be different on the short pages and on the Revenue software, in which case just look out for the box description. I mention this just in case you're unaware of the 31st October online filing deadline.
And yes you should include under car, van and travel expenses.
Only thing i would question is if the van is used 100% for business.
For this to be the case the a query HMRC would ask would be
1. Where is your business premises and home premises? Are they the same or separate? If separate where is the van parked overnight? As if you drive home and leave the van outside your home premises then this is private use not business use.
where the non business usage is insignificant didn't the change to the rules in 2005 change that so that there was no downside with storing the van at home anymore?
Not saying that your wrong on the parked outside issue but I'm sure that there was something that I read about that recently and it stuck because it seemed a bit odd when compared to the rules for company cars as opposed to vans.
Got to go out in a min but I'll have a trawl through the HMRC website when I get back as that one's really ringing bells in the back of my head.
Talk in a bit,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
The van is only a 2 seater; my business is run from the van which is adapted as it contains specialist equipment for oven cleaning
Van is kept at home and can only be used for business purposes as equipment is fixed (gas unit with heating container); also has advertising all over it
