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Capital allowance on a commercial van

  • 12-08-2014 8:31pm
    #1
    jimmydkid
    Registered Users, Registered Users 2 Posts: 170 ✭✭


    If I buy a commercial van for €22000 including vat , how much of a capital allowance is available to me per year? How will it affect my income tax? Sorry if these seem like silly questions I'm not that well up on capital allowance


Comments

  • #2
    rahmalec
    Registered Users, Registered Users 2 Posts: 193 ✭✭rahmalec


    jimmydkid wrote: »
    If I buy a commercial van for €22000 including vat , how much of a capital allowance is available to me per year? How will it affect my income tax? Sorry if these seem like silly questions I'm not that well up on capital allowance

    12.5% of the total cost if not vat registered.
    12.5% of (cost minus vat paid) if vat registered I presume.

    Maybe you should allow for some private use, I don't know? I know you're not supposed to ever use the van privately if you have commercial tax on it, but I'd say there isn't a single van in the country that isn't used privately. If you put 100% revenue might find it hard to believe though. Maybe someone else can clarify this. Seems like a damned if you do, damned if you don't situation.


  • #3
    jimmydkid
    Registered Users, Registered Users 2 Posts: 170 ✭✭jimmydkid


    rahmalec wrote: »
    12.5% of the total cost if not vat registered.
    12.5% of (cost minus vat paid) if vat registered I presume.

    Maybe you should allow for some private use, I don't know? I know you're not supposed to ever use the van privately if you have commercial tax on it, but I'd say there isn't a single van in the country that isn't used privately. If you put 100% revenue might find it hard to believe though. Maybe someone else can clarify this. Seems like a damned if you do, damned if you don't situation.

    I have a car for private use I would be using the van totally for work, I'm not reg for vat.
    Is it calculated straight line or does it reduce each year? I can't seem to find much about it online


  • #4
    ucd.1985
    Registered Users, Registered Users 2 Posts: 867 ✭✭✭ucd.1985


    jimmydkid wrote: »
    I have a car for private use I would be using the van totally for work, I'm not reg for vat.
    Is it calculated straight line or does it reduce each year? I can't seem to find much about it online

    Straight at 12.5% per annum


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