receipts re claiming against tax on vehicle purchase.

[gardener68]

does anyone know how a receipt from a seller should be worded/written so that the buyer can use it to claim back tax on purchase.
in this case its a cash transaction.
just want to know how it written out and what to write and where ect.
any advice will be much appreciated.
thanks.

[gemini]

you dont actually claim tax back, it goes against your tax so a bill of sale is all you need

[gardener68]

claiming back tax bit.

meant to word it like you did.

but is there a standard way that you are meant to write these things out.
as an alternative to the sort of scrawled out sold as seen jobs you get/give out when you sell an old nail outa the freeads.
ps edited the title, dont want to sound like a right

[rover]

Just make sure you have the sellers name address and PHONE NUMBER! The revenue have been known to want to contact the seller to make sure you receipt is legit. Any legible piece of paper is ok for them so long as it has all the details.

Oh, make sure it is made out to your company name as well as your own name!

Rover.

[gardener68]

nice one mate .i will get it written out like you have said.
cheers russ

[FredTransit]

As above. Also don't forget to claim for anything you add to van after you buy it such as security.

[gardener68]

seeng that the van is going to be a work vehicle does this mean that i can claim against tax all the costs of purchasing it including the rental and fuel for hire car to get to it.
was only originaly going to claim cost of van plus fuel and insurance to get it home.

[FredTransit]

I am not sure about the car hire, unless it's to do with the course of your business (maybe in place of a van cos you don't have one?). Anything to do directly with your business re the van can be claimed, such as tools to do your job or load straps ect. Sod it, it's better in your pocket than IR, I would try the worst they will do is refuse the claim!

[gemini]

you cant claim all the cost for purchase now only a percentage, unless you hire or lease one then the full cost can be claimed against your tax, servicing and repairs can be claimed in full so can fuel etc, what you need is an accountant, people think they are saving money by doing the tax themselves, not true a good accountant will pay for his bill and more in your pocket as well they claim for alot more things than you would think of

[gardener68]

i will keep all receipts and either get advice or an acountant to look into it.
thanks for all your help.

[Terry]

Gemini is dead right a good accountant is worth his weight in gold.
I recommend you ask around amongst other self employed people to find a good one.

[Terry]

There are other things no-one will tell you .....like.
Register for VAT , everyone knows you wont make the threshold in the first year, but its not illegal to be an optimist. You'll have to de-register for year 2 e.t.c., but meanwhile you have saved 17.5% of everything !
Try and get the accountant to make your company non-profitable, the first year,because the first year figures decide how much tax you pay for the next 2 years, no profit = no tax.
Good luck

[FredTransit]

There are other things no-one will tell you .....like.
Register for VAT , everyone knows you wont make the threshold in the first year, but its not illegal to be an optimist. You'll have to de-register for year 2 e.t.c., but meanwhile you have saved 17.5% of everything !
Try and get the accountant to make your company non-profitable, the first year,because the first year figures decide how much tax you pay for the next 2 years, no profit = no tax.
Good luck

DO NOT register for VAT if you are a service company and don't need to. Like mechanic, removals, deliveries. You will NOT pay out as much on VAT as you have to charge. For instance if you bought £40 of diesel, the VAT will be less than the VAT you will charge your customer for say two hours of your time, even if you don't turn a wheel or travel very far. The VAT you pay out on your materials will be far less than the VAT you charge on your time/service. You will be forever paying VAT to HM, in quarterly instalments. You will never get any back.

I agree about the non profit bit though.

[rover]

I'm not V.A.T registered after 14 years, not worth it if you dont have to IMO. As for the non-profit bit.....I'm still managing that I keep being told I dont charge enough...but what do I do? Charge more and have less customers? or keep it cheap and be busy? I think I'd rather work the hours cos I hate being bored!

Rover.

[FredTransit]

Also re the VAT thing, something many people don't take into account. VAT returns and other accountancy will add to your accountant's bills. It's another hidden cost of being registered.