With nearly 4 million vans in the UK in 2017/2018, the commercial vehicle market is a buoyant one. The growth is not surprising, as there is a large increasing number of tradespeople and sole traders in the construction industry and there is also the huge courier/ freight market.
Due to the phenomenal expansion of online shopping here in the UK, consumers need packages and goods delivered to their home and business address on a regular basis.
Commercial vehicles and in particular vans are required to meet this demand.
For some small, medium and large businesses, it is possible to lease and run a mixture of commercial vehicles and passenger cars, as this meets the requirements of the fleet….
For LCVs, the way in which they are treated for taxation purposes is slightly different than a car. For purchases on an LCV, the business can claim 100% in the first year via the Annual Investment Allowance. For rental-style products, like contract hire and finance lease, a business can claim back 100% of the rentals, as long as:
· There is no private use; and
· 100% of Vat can be reclaimed premising – Vat registered/no private use/no exempt turnover/flat rate VAT scheme
If you are using your commercial vehicle/LCV for private use you are only able to claim back the % of the rentals and % of the Vat which is business use. Statistics suggest that a sign written van will be seen by over 24,000 people per day, so do be careful as to how you operate your vehicle with the limits of the taxation legislation.
For more info on how you taxation works for company car and commercial vehicles check out the business section in our Help and Advice pages, read about modifying, personalising or sign writing your lease vehicle or stay tuned to our Blog pages for motor industry news, reviews and updates.