Accountancy question

[t-s]

I'm in the process of setting up on my own, and I'm looking into getting a van on finance. My question is having set up a ltd company if I get the finance on the van in my name can I claim the vat back and tax through the company or would the loan have to be under the company name (think I will have difficulty being accepted as company was only set up a week ago)

 

[Guest77]

Firstly I strongly recommend you do not buy a van on finance if your brand new into the business. Taking on a 300 quid a month dept your stuck with for 4 years won't help your cash flow in these very early days. Buy a van for 2 grand cash and look after it, then in 3 years time if you have made money or are making money then upgrade the van, JMO.

 

[telectrix]

cracking advice from shrek. ( that's for the van. don't take any advice from him on beer, though. he's got a stomach lined with titanium and drinks cackfowl ).

 

[t-s]

Appreciate the advice and I know what your saying, but I have a lot of work on and I will be covering some miles so I really needs something reliable, only looking at spending around 5000 and putting a deposit down so payments won't be high plus while I'm busy I intend to pay off as much as I can off the finance so that I the work drops off it's less to fork out for.

 

[Guest77]

If you buy the van in your own name then you won't be able to lose the Vat, but you will be able to lose any money you put down on the van as tax deductable as you will be self employed. You will be able to get mileage running it, 44p a mile from memory.

 

[HandySparks]

...but you will be able to lose any money you put down on the van as tax deductable as you will be self employed. You will be able to get mileage running it, 44p a mile from memory.

One or the other, not both.

It's either actual expenses or the 45p/mile for use of own vehicle on business mileage.

 

[Deleted member 26818]

In order to claim back VAT, you have to first register.
Then you have to charge VAT on what ever work you do.
Then you pay that money to the VAT man.
If you get something wrong, they fine you.
If you are late making a payment, they fine you.
If you are late paying the fines, they fine you.
They charge interest on late payments.
They come and inspect your books whenever they want.
They can turn up at 7am, and it doesn't matter that you have work booked for that day, they can just take over your office or home, and go through all your paperwork.
If they want, they can take all your paperwork and your computers away to their office.
If they find that you have underpaid VAT at any time, you get fined and charged interest from whenever you should have paid, up untill you do pay.

You become an unpaid Tax collector who can be fined for any errors you make.

 

[Octopus]

I'm in the process of setting up on my own, and I'm looking into getting a van on finance. My question is having set up a ltd company if I get the finance on the van in my name can I claim the vat back and tax through the company or would the loan have to be under the company name (think I will have difficulty being accepted as company was only set up a week ago)

You need to see an accountant as this post raises a number of difficult questions that only a tax specialising accountant can answer.

A couple of hundred now IS a price worth paying!

Sole trader in year 1 matey - less hassle, less risk

 

[johnsparks23]

The capital allowance figure is rising, according to my accountant. So you'll be able to claim a fair amount back on you van expense. I f I were you , I'd not get carried away in
your first yr of trading. Think the thresh hold for non-voluntary VAT is £81,000
Before that an accountant would rarely encourage voluntary VAT registration. It will be an expensive, time consuming ball ache.
go limited if your at risk financially, which no Doubht you will be, with new customers.

 

[plugsandsparks]

Keep the van in company name, keeps it simple, you may have to give a personal guarantee for the finance company to offer a deal on the van. That's assuming your personal credit score is better than your companies...lol

 

[t-s]

I realise that vat and ltd is not great for new startups, but the work I'm doing there isn't really a choice . I know I need an accountant just trying to find one that comes recommended. I'll see what I can get reggae ding finance in the company name I just have my doubts, just thought if ask the question as I thought people on here may have been in similar situation

 

[Guest77]

Give these a ring, ask for their prices and ask if they give a free initial interview and advice on setting up, what the software they recommend etc etc, just don't pay anything at the set up stage, an accountant should have to impress you

Accountants in Darlington County Durham - Mitchell Gordon

 

[johnsparks23]

I can highly recommend NJB-taxback.co.uk
Nicholas James Brown.
07547 472 281
HMRC Approved agent.
He represents my self and many sparks I know personally.

 

[Spurs]

Lease a van. With your niceic membership you can get an enhanced deal at pergoet. Will cost in the region of £200.00 per month and you can claim the vat when you become registered. Also its tax deducible as a business expense. Who needs to own a van which losing value every day?
The best advice as above is to employ an accountant who operates in our field asap.
good luck though.

 

[Thewiz]

Are you on your own or do you have employee's? 80k is a he'll of a lot of money to turn over on your own. Especially start up. 200 a day everyday will earn you 48k a year so 30k on materials. My advice is to try your best no to go vat registered. Until the accountant forces you to. We turn over 15-20k a month so we have no choice.

It's a pain in the ---.