newly self employed man and van .

[miserlyme]

hello. my first post / ask for help .
im about to start as a self employed man and van / delivery service . i already own a van , i was wondering whats the most tax efficeint way of running the van .
it is in need of some fairly expensive repairs , so i was hoping to wait until i become self employed on 6th of april to do these repairs . i would appreciete any advice / thoughts on the subject greatly.
tnanks in advance . john .

[Eric Mc]

1st point - get an accountant.

2nd point - you will be able to claim the work on the van as a business cost - even if you spend the money shortly before self employment commences. "Pre-trading" costs are allowable if they were incurred "wholly and exclusively" for the purpose of your trade.

Don't dorget to notify HMRC within three months of commencement.

[Oi_Oi_Savaloy]

1st point: retain Eric Mc! (I do and I cannot recommend him highly enough. And no, I'm not looking for a discount on my fees for the recommendation Eric!!)

2nd Point. Er, I don't have one.

[Oi_Oi_Savaloy]

Oh - one small piece of advice and Eric will no doubt correct me but you'll have to pay Class 2 NI and Class 4 NI. Class 2 is paid monthly and Class 4 at the end of the tax year and is 9% of your profit. Make sure you factor this figure in for your tax savings.

It hurts (as I've found out) if you haven't made an allowance for it.

I hasten to add that I only retained Eric after I'd not saved for my Class 4. It had nothing to do with Eric!

[Eric Mc]

No need for any corrections as you are absolutely correct

[miserlyme]

thanks for the help fellas . i suppose my next question is . what are your fees eric and how does your service work ?

[Eric Mc]

If you want a chat on this subject, PM me and I can let you know what I do, how I do it and what you need to do etc.