Tax Data

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A business can claim 100% of the input tax on the purchase of the van and up to 100% of the cost in the year of purchase through Capital Allowances. A company can supply the van to a director or employee tax free if the private use is “insignificant”. Where there is significant private use a benefit in kind arises. If the company pays for fuel there is also a fuel benefit). The company then claims all the running expenses. The interest on a loan used finance the purchase can also be claimed. For a partner or sole trader the capital allowances, interest and running expenses are adjusted for private use.