HP, lease or contract hire
Discussion
Question for the accountants amongst us.
I will shortly be going self employed.
I develop property and in between projects do a bit of plumbing, plastering, tiling and what not.
Thing is, carrying about my materials and tools is destroying my car so I think I am going to get my self a little van.
What I want to know is what is the most tax efficicient way of financing the vehicle.
Lease purchase (I assume this is the same as a finance lease), HP or contract hire (is this an operating lease?)
Thanks in advance
Matt (a better tiler, plumber and plasterer than accountant)
I will shortly be going self employed.
I develop property and in between projects do a bit of plumbing, plastering, tiling and what not.
Thing is, carrying about my materials and tools is destroying my car so I think I am going to get my self a little van.
What I want to know is what is the most tax efficicient way of financing the vehicle.
Lease purchase (I assume this is the same as a finance lease), HP or contract hire (is this an operating lease?)
Thanks in advance
Matt (a better tiler, plumber and plasterer than accountant)
Thanks guys.
All the salespeople I have spoken to have waxed lyrical of the benefits of leasing but as I thought by the end of the term after the vehicle has been disposed of all forms of finance work out roughly the same.
Part 2 (did I not mention that this was a 2 part question?)
VAT Registration.
My main activity will be buying, renovating and selling houses with bits of handyman stuff in between. I am not too fussed about having to charge VAT on the handyman stuff because there will not be a vast amount of it.
I will however be buying lots of materials and using a few other trades in the development who will charge me VAT. Can I register of VAT and claim the VAT back on these materials and services.
I do not however obviously want to have to charge (or be charged) VAT on the purchase and sale of houses.
All the salespeople I have spoken to have waxed lyrical of the benefits of leasing but as I thought by the end of the term after the vehicle has been disposed of all forms of finance work out roughly the same.
Part 2 (did I not mention that this was a 2 part question?)
VAT Registration.
My main activity will be buying, renovating and selling houses with bits of handyman stuff in between. I am not too fussed about having to charge VAT on the handyman stuff because there will not be a vast amount of it.
I will however be buying lots of materials and using a few other trades in the development who will charge me VAT. Can I register of VAT and claim the VAT back on these materials and services.
I do not however obviously want to have to charge (or be charged) VAT on the purchase and sale of houses.
Just spoke to a very helpful chap at the revenue who assures me that I do need to be registered for VAT because the things I am selling (houses) will mean my turnover will exceed the threshold.
The first property that I sell as a business will be zero rated, thereafter excempt.
I can however reclaim all VAT on purchases.
Surely this loophole needs closing quick sharp?
The first property that I sell as a business will be zero rated, thereafter excempt.
I can however reclaim all VAT on purchases.
Surely this loophole needs closing quick sharp?
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