Van and Commercial Vehicle Finance for the Self-Employed

 

 

If you work for yourself and need a van for your job, it’s important to know your options for getting a finance deal. Many people in the UK are self-employed, and having a vehicle is crucial for their work. If you’re one of them, you can find van finance options without much hassle.

To help self-employed individuals understand van finance better, we’ve created a guide with answers to common questions.

 

Can you get van finance if you’re self-employed?

Yes, if you’re self-employed, you can still get van finance. A work vehicle is often essential for running your business efficiently, and it should also be cost-effective.

 

What documents do you need for van finance?

When applying for van finance, you’ll need to provide some documents, such as proof of income (like bank statements), your latest tax return, an earnings form from HMRC, proof of address, and details about your work history.

 

Can you buy a van as a sole trader?

Yes, as a sole trader, you can buy a van outright instead of leasing one. While leasing is a common option, buying may suit your business needs better.

 

Is it difficult to get van finance?

Getting van finance as a self-employed person is straightforward and similar to applying for a bank loan and the lender will check if you can afford the monthly payments.

 

Can you get van finance with bad credit?

Even if you have a poor credit score, there are lenders that specialise in bad credit van finance. You’ll still need to prove you can make the payments and provide the necessary documentation.

 

Can you finance a car if you’re self-employed?

Yes, you can get car finance as a self-employed individual. The process is similar to van finance, and your business size or type won’t necessarily prevent you from getting approved.

While your income may be less predictable, many lenders are willing to help. Tips include settling old loans, checking and improving your credit score, considering your partner’s credit history, and reducing spending habits.

 

Requirements for self-employed individuals applying for finance:

  • Your business needs to be officially registered and trading for at least two years for many lenders. However, this isn’t the case with AMT, and we specialise in funding you within the first two years of your business.
  • Lenders may expect your net worth to be double the amount you want to borrow.
  • You need to declare if the vehicle is for business, personal use, or both.

 

Company van tax for sole traders:

Sole traders don’t need to pay company van tax as your van is considered a necessary tool for your business, not a perk.

 

Is leasing a van tax-deductible for sole traders?

Leasing a van is tax-deductible for self-employed individuals. You can claim leasing payments and fuel expenses against your business on your tax return. VAT-registered businesses can also reclaim up to 100% of the VAT, provided the van is used solely for work. If the van is also used for personal journeys, you can still claim back part of the VAT, up to 50%.

 

If you’re self-employed, choosing the right van is crucial for your business success. You’ll want to choose the right model for you and your business. Research is key when it comes to selecting the right van for you as there is a real variety of models available – from panel vans to crew vans, pick-up trucks to minibuses, it’s important you invest in a van to complement your everyday needs. We offer high-quality new, nearly new, and approved used vans to meet your business needs. Choose to rent, lease, buy or subscribe to a car or van from us. Our experience, relationships and market knowledge mean that we are perfectly placed to help you find your ideal vehicle.

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