Contact Us
Company Van

Questions and Answers

Can I transfer my van to my new business?

I have set up my own painting and decorating business as a sole trader. I have a van that I’ve owned for a couple of years. Can I put it through the business now?

Last updated 11 Mar 2016 | First published 10 Mar 2016

By Gearoid Condon, FCA 2 min read

 

Can I transfer my personal van into my new business?

Yes. If you’re using the van for your trade, you can transfer it into the business and claim tax relief on it, even if you originally bought it privately.
 
This is a common step for new sole traders and can reduce your tax bill.
 

How does the transfer work?

On the day you start trading, the van is treated as if the business buys it from you at its current market value. This value becomes the basis for your tax relief.
 
You don’t pay tax personally on this transfer, it’s simply an accounting step.
 

Can I claim capital allowances?

You can claim capital allowances of 12.5% per year over 8 years on the van’s market value. This reduces your taxable business profit each year.
 

What if I use the van privately?

If you use the van for both business and personal trips, you simply reduce the claim to reflect the private use portion. It is common that 20% of the van usage is deemed to be personal, so in that case you could claim 80% of the annual allowance.
 

What running costs can I claim?

You can also claim the business share of your ongoing van costs, including:
 
  • Insurance  
  • Motor tax  
  • Servicing and repairs  
  • Fuel  
  • Tyres  
  • Cleaning and maintenance  
 
Again, if there’s private use, you only claim the business percentage.
 

What are the VAT rules for vans and fuel?

If your business is VAT registered, you can reclaim VAT on diesel used for business purposes as well as most costs relating to commercial vans (subject to Revenue rules).
 
You cannot reclaim VAT on petrol or on vehicles that do not meet Revenue’s definition of a commercial van.
 
If the van is modified or used mainly for private purposes, VAT recovery may be restricted.
 

Is transferring the van always a good idea?

Usually yes but you need to consider:
 
  • The van’s realistic market value  
  • How much private use you expect  
  • Whether VAT registration applies to you  
  • Whether the van meets Revenue’s definition of a commercial vehicle  
 
A quick chat with an accountant can help you avoid common pitfalls. If you’d like help valuing the van, calculating business‑use percentages or understanding your VAT position, your local TaxAssist Accountant can guide you through the process.
 

Looking for an accountant for your business?

Contact TaxAssist Accountants for a free, no-obligation consultation to get a fixed fee quote

061 310429

Or contact us

Last updated 11 Mar 2016 | First published 10 Mar 2016

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Gearoid Condon, FCA

Gearoid is a highly experienced Chartered Accountant with 25 years of expertise in business consultancy, specialising in supporting SME business owners. Gearoid has worked with start-ups and with established businesses to improve the way they run, with particular focus on growth, efficiency, and structuring operations. Through his experience Gearoid has a strong understanding of the tax system and business regulations in Ireland.

More by this author
Trustpilot

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 6,246 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 23 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free consultation

061 310429

Or contact us