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Commercial Finance Options

Commercial Finance

Delivering Value - Vans

The 'Delivering Value' programme offers high customer savings with 5.8% APR representative when financed through Ford Credit finance.

If you're wondering what option is the best for you. Please take the following questions in order, to make the appropriate decision as to whether to purchase a vehicle the 'Delivering Value' programme.

1, Are low running costs important to you?

2, Do you drive less than 20k miles per year?

3, Will you keep the van for more than 3 years?

4, Will you finance all or part of the vehicle?

If your answers to the questions are "No" then the 'Delivering Value' programme is the best option for you.

Annual Investment Allowance

Did you know that customers who delay their Commercial Vehicle purchase until 2016 could miss an opportunity to defer their tax bill?

From January 1, 2016 the Annual investment Allowance is reducing.

What is the Annual Investment Allowance?

The Annual Investment Allowance (AIA) is a tax allowance which business can use to claim an accelerated 100% tax deduction on plant and equipment purchases in the year they are acquired. This includes purchased Commercial Vehicles (cars are excluded).

What is changing?

The current tax allowance limit is £500,000 and from January 1, 2016 this annual limit reduces to £200,000. So there will be greater capacity to accelerate deductions in 2015 versus 2016 for certain Commercial Vehicle customers spending between £200,000 and £500,000, (assuming they have not already in 2015 made other qualifying plant equipment investment).

How does it work?

Businesses can either use the 18% main pool writing down allowances for commercial vehicle purchases or they can accelerate their capital allowances by using the 100% Annual Investment allowance. All plant and equipment (including commercial vehicles) up to the AIA limit bought in the financial year can be included in the AIA. Business buying commercial vehicle (cash or finance) can calm 100% writing down allowances against the AIA. The total amount of the utilised AIA is then offset against any taxable profit. Once the 100% allowance has been used then the 18% WDA is applied to the remaining value of pool.

What will this mean for Commercial Vehicle Customer?

In this example your customer is purchasing two vans at a cost of £20,000. The two examples show the taxable benefit in utilising AIA in 2015. It is important to note that this is timing only and the tax liability in later years maybe higher.