Discuss Will a new van this year wipe out my tax bill for 2016? in the Plumbing Jobs | The Job-board area at PlumbersForums.net
No.
If you buy a van for say £10,000 you can claim 20% of that ( £2000) or that could drop you out of some 40%.
A 10k van will mean you don't pay the tax on 10k of your profit, as your profit is now 10k less due to the van purchase. It doesn't mean you can deduct 10k off your tax bill.
So if you have made 30k this year for example and have to pay 6k in tax at 20%
you buy a 10k van and your profit would be 20k not 30k so now only 4k to pay in tax.
In other words phil kiss goodbye to waitrose and say hello Lidl!
A 10k van will mean you don't pay the tax on 10k of your profit, as your profit is now 10k less due to the van purchase. It doesn't mean you can deduct 10k off your tax bill.
So if you have made 30k this year for example and have to pay 6k in tax at 20%
you buy a 10k van and your profit would be 20k not 30k so now only 4k to pay in tax.
Reply to Will a new van this year wipe out my tax bill for 2016? in the Plumbing Jobs | The Job-board area at PlumbersForums.net
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