Buying a van for business on a personal credit card
Discussion
Hi all,
I'm new to the forum and sorry for my first post being a question, but wondered if you could offer some advice.
I have had a self-employed business for around eight years now and have managed with my car which I just claimed mileage. However, I am now looking at buying a van as it would be more practical.
I'm looking at spending around £15,000 inclusive of VAT (Becoming Vat registered in April). My tax bill is rather high and I would prefer to offset what I can for the van against my business rather than the taxman!
My question is, am I allowed to purchase the van on my personal credit card, have the business pay back the credit card and offset the purchase of the van against my tax return.
Any thoughts on the best way of doing this purchase?
Your help and advice would be greatly appreciated as trying to do research on the internet is mind boggling.
Cheers,
WIll
I'm new to the forum and sorry for my first post being a question, but wondered if you could offer some advice.
I have had a self-employed business for around eight years now and have managed with my car which I just claimed mileage. However, I am now looking at buying a van as it would be more practical.
I'm looking at spending around £15,000 inclusive of VAT (Becoming Vat registered in April). My tax bill is rather high and I would prefer to offset what I can for the van against my business rather than the taxman!
My question is, am I allowed to purchase the van on my personal credit card, have the business pay back the credit card and offset the purchase of the van against my tax return.
Any thoughts on the best way of doing this purchase?
Your help and advice would be greatly appreciated as trying to do research on the internet is mind boggling.
Cheers,
WIll
I'm sure it is possible as long as your paper trail is correct. I took a personal loan to buy a vehicle which was later transfered to my business and I pay the DD from my own bank account and then the company pays me the exact same amount each month from the business account.
My accountant didn't question it so I guess it's OK to do it this way.
My accountant didn't question it so I guess it's OK to do it this way.
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