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How much can I claim?

fred funk }{ · 2008-05-02 17:57:48

I'm in my first year of business as a sole trader. I bought a van a few months ago and what I'm wondering is how much of the cost of the van can I claim as an expense in my first year. I bought the van straight out, no finance. It cost about 5K before VAT. Thanks.

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02-05-2008 6:57pm

#1

fred funk }{

Registered Users Posts: 6,827 ✭✭✭

Join Date: January 2005

Posts: 6638

I'm in my first year of business as a sole trader. I bought a van a few months ago and what I'm wondering is how much of the cost of the van can I claim as an expense in my first year. I bought the van straight out, no finance. It cost about 5K before VAT.
Thanks.

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#2 02-05-2008 7:24pm
dooloo

Registered Users Posts: 62 ✭✭

Join Date: July 2006

Posts: 55

As with most assets, you get capital allowances on the van over an 8 year period. Hence you will get tax relief of €625 per year.

Handy advice for when buying assets is to lease them instead of buying them outright or via bank loan as you will then get tax relief over the term of the lease. i.e. if you buy a car with a 36 month lease, you will get tax relief of €1,667 per year for three years. Same tax relief overall but you get it quicker.

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