Buying a Van Through My Business
Secure Van Finance Through Your Business
Can I Buy a Van Through My Business?
If you’ve ever wondered, ‘Can I buy a van through my business?’—not only is it possible, it’s often a smart move for many business owners. However, it does come with rules, tax implications, and benefits that are important to understand before making the leap.
In this guide, we’ll break down everything you need to know. From tax benefits to finance options and how to decide if it’s right for you, we’ll walk you through the entire process. Plus, we’ll share how working with a trusted finance broker like us at First Oak Capital can make the whole experience much smoother.
Why Buy a Van Through Your Business?
Let’s start with the basics. Why would you want to buy a van through your business?
First, it separates your business and personal finances. Second, you could claim tax relief on the purchase. Third, it helps build business credit if you’re using finance. And finally, it often allows for easier budgeting.
A van is often an essential part of a business. Whether you’re delivering goods, visiting clients, or transporting tools—it’s a core asset. So, why not treat it like one?
Who Can Buy a Van Through Their Business?
Good news: most businesses can.
That includes:
- Sole traders
- Partnerships
- Limited companies
- LLPs (Limited Liability Partnerships)
As long as the van is being used for business purposes, you can explore purchase or finance options through your business name.
Can You Use It for Personal Reasons Too?
Yes, but with conditions. If you use the van for both business and personal use, that may affect your tax relief and VAT claims. It could also mean you’re liable for benefit-in-kind (BIK) tax if you’re a director or employee.
So, yes you can use it personally—but be clear about how often. Keep records, and always speak to your accountant.
How Can You Buy a Van Through Your Business?
There are several options:
- Outright Purchase – Pay in full from your business bank account. You own the van immediately.
- Hire Purchase – Spread payments monthly. You own the van after the last instalment.
- Finance Lease – Rent the van for a fixed period. At the end, return it or extend the lease.
- Contract Hire – Like leasing, but without ownership at the end.
Each has pros and cons. Your decision depends on cash flow, accounting preferences, and how long you want to keep the van.
New vs Used Vans – Which Should You Choose?
Both have advantages.
A new van offers modern features, warranty coverage, and fewer repair costs. It may also be more tax efficient for capital allowances.
A used van, on the other hand, is often cheaper and avoids the initial depreciation hit. Plus, it may be easier to buy outright if your business has limited credit.
Either way, you can finance both through hire purchase or leasing. The decision comes down to budget and intended usage.
Can You Claim Tax Back When Buying a Van Through Your Business?
Yes. Here’s how:
- Capital Allowances – Most vans qualify as plant and machinery, so you may claim the full cost against profits.
- VAT Reclaim – If VAT registered, you can often reclaim the VAT on a van used exclusively for business.
- Benefit in Kind (BIK) – For vans, BIK rules are more lenient than for cars. Still, if there’s personal use, expect a small tax charge.
Want more detail? Check out HMRC’s capital allowances guide.
Van Finance With First Oak Capital
Finding the right loan with the right lender on your own can be tricky. We simplify the process, working with our list of trusted lenders who understand business van finance. Whether you’re a sole trader, limited company, or partnership, we can help you secure funding quickly and efficiently.
How We Can Help
Applying for Business Van Finance through your business alone can be frustrating. Whether your looking to buy a new car through your business or a used car thourgh your business, we make it easier by:
- Finding the right lender for you
- Helping you prepare your application
- Improving your approval chances
- Finding you the best deal available
Let us guide you through the process, answer your questions, and help you secure the funding you need. Call us today or complete the form on our website to get started.
Q: Can a sole trader buy a van through their business?
A: Yes. You can buy it in your name and claim expenses based on business use, or through a finance agreement in your business name.
Q: Can I reclaim VAT on a van purchase?
A: If you’re VAT registered and the van is used 100% for business, you may be able to reclaim all the VAT.
Q: Will I pay benefit-in-kind tax?
A: Possibly. But for vans, BIK rates are generally lower than for cars, and only apply if there’s personal use.
Q: Do I need a deposit for van finance?
A: Not always. Many lenders offer low- or no-deposit van finance, especially through a broker.
Q: Can I get finance with bad credit?
A: Maybe. Some lenders specialise in poor credit applicants, but terms may vary.
Q: What if I’m buying a second van?
A: Great! It may even improve your chances if you have a positive finance history.
Q: Can I finance a van that’s already been used?
A: Yes. Used van finance is common and flexible.