If you have a used van that you use for your business and for private use, you may need tax advice. To find out more visit http://www.companyvehicle.co.nz/
If you’re running a small business, you will already be aware that there are certain things that you buy for your company that may have tax implications. Many things can be “written off” against your tax bill, whilst others may incur tax charges. IF you haven’t already, it usually makes sense to use the services of a specialist tax accountant to handle your tax affairs. A good tax accountant could help you to make sure that you only pay the tax you need to, and that you don’t miss any payments that you’re legally obliged to make.
How does a used van make a tax difference to my business?
The rate at which you are taxed for the van you use depends largely on who uses the van and when. If you use your van for personal journeys as well as business journeys, then you will be liable for a tax charge. Similarly, if you make your van available to other directors or to employees of your business for their own personal use, or if a member of your family, who isn’t employed by your business, drives the van, then you may be subject to a tax charge.
These charges can be reduced if the van has only been available for part of the tax year. So, for example, if the van was only available to you or an employee for private use for 6 months of the tax year, the charge would be halved. If you have had shared use of the van, the charge is split between you and the person or people you shared it with.
You may also incur charges if your private fuel is paid for by your company, or for any other uses of your van whilst it is owned by your business.
Business tax is a complicated area, which is why it’s always advisable to seek the advice of an expert who can look at your current situation, including how you use your van, to determine how much or how little you need to pay in tax. There will be many tax accountants in Portsmouth and around the country who can help you to ensure that your business doesn’t fall foul of the Revenue and Customs office and to give you peace of mind that your business interests are being looked after.