UK sole trader car v van

[spiny]

Hello, first post as I have an accountant that does all I ask, unfortunately she's away till early Jan and my vehicle has died and gone to the great scrapyard in the sky over the xmas holidays, and I really need a bit of help sooner than she returns

right couple of bits of info

• I am a sole trader, and on this years figures, and a projection into 2017 I will only be paying basic rate tax for the forseeable future, with a taxable profit of c£20k, rising to £25k next year.
• I am vat registered by choice paying flat rate scheme, trade well under the vat threshold.
• I will have about 75% work against 25% personal mileage
• Fortunately I have sufficient funds saved to buy a new/almost new outright immediately,
• The current vehicle isn't a business asset [mine when I started trading] and has little residual value.
• As a ballpark figure vehicle value will be about £16k, makes any example easier too!

I have done a bit of research and end up with a couple of things swimming round in my uneducated head, regards van v car

Both have there plus and minus as regards practicality, although car slightly edges in favour personally

Just looking for confirmation I am right in my thinking.

• If I buy a van, I will be able to reclaim the vat.
• If I buy a car thats not possible but is reflected in car price as dealers already done this.[comparing equivalent car v vans] so not really any advantage either way
• buy a van, can claim AIA 100% in first year minus any personal prorata, so in the example £16k van @75% business use, would give a tax benefit of £2400
• buy a car can't claim AIA but write down at 18% [as under 130g/co2] of prorata business personal value so in example £16k car business use, values at £12k so gives a depreciation of £2160 that can be shown as an expense?

First question- would I then be able to claim running costs or mileage @45p [my choice]
secondly can the car write down continue through the years.
Thats where I come unravelled, as I see a larger advantage to the car, am I missing something?
and I know I can claim ongoing costs, as either mileage @ 45p or a breakdown of expenses prorata business/personal , do I have a choice which one with either car or van option.

sorry for so many questions, and if its a bit unclear!

Many thanks in advance if anyone manages to answer, as I really need to get a vehicle before I am going to get to speak to my accountant

Mark

 

[spiny]

cant seem to edit this any more,

• buy a car can't claim AIA but write down at 18% [as under 130g/co2] of prorata business personal value so in example £16k car business use, values at £12k so gives a depreciation of £2160 that can be shown as an expense?

think thats where I'm getting lost, the £2160 is then offset against profit, so at basic rate makes a tax saving of £440