Buying a van – should I buy in company or individual name?

Van

Simple advice is buy through your company.

VAT – if your company is VAT registered, you can claim VAT on the purchase.

Corporation Tax – You will be able to claim Capital allowances on purchase price.

Income Tax – No taxable benefit arises if a van is made available to an employee (including a director) mainly for business use and the employee is not allowed to use the van for private journeys other than ordinary commuting between home and work.
See ITEPA 2003 Section 155 (5)

 

Bonus points:

  • Ensure you are buying a van not a car – HMRC has a useful list
  • Paperwork – ensure the paperwork is in company’s name and all payments go out of company’s bank account.

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