Tax relief on Electric Van

[JT101]

Hi

I am going to get myself an electric van. So many reasons to do it right now.

But I need to know what is the best option for tax relief in this current tax year, as i know the rules have changed. Here are my two options as I understand it. Both of which are based over a 3yr period:

Option 1: Buy a very good condition used van for £11500. Question: Can i claim this in one lump sum, or is it staged, and can I also claim 45p per mile relief? I do approx 7000 business miles per year, so £3150 * 3. So does that mean I can claim relief on £11500 + (3 x £3150) = £20950

Option 2: PCP deal, whereby I stump up a deposit upfront (say £10k), and then make 40 monthly payments of £414. So approx £26560 in total + same mileage as above. £9450 + £26560 = £36010.

So if I am understanding this correctly, it would be much better financially for me to Personal Contract Purchase a new van?

Thanks

 

[Mottie]

Do you have an accountant?

 

[JT101]

Great question. No. My accounts are pretty simple so I do it myself. I wonder if I could just get some advice from one on a one off basis?

 

[Mottie]

Bit dodgy asking tax advice from a total stranger on the internet. How would you know if they are giving you the correct info?

All I can say is that you will probably get more relief in the second option but you are paying more in the first place!