Monthly Archives: July 2021

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Buying commercial vehicles for tax reasons

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Originally written by John Miller on Small Business
This is not a simple topic and is dependent on a number of factors, such as the type of vehicle you wish to buy.
As a sole trader, I would recommend buying the car yourself. The benefits of buying a car through your business are limited.
If your company buys a car, and a loan is taken out to purchase the vehicle or if it’s on Hire Purchase, only the interest payments are an allowable company expense.
If you buy a van, buy it through your company. Vans are classified as plant and machinery for tax purposes. As such, they qualify for 100 per allowances under the Annual Investment Allowance regime. This means you get a deduction for 100 per cent of the cost to reduce your company’s taxable profits.
>See also: 8 business van financing tips for your SME
Quirky as it might sound, motorbikes are also not a car, so get the same regime as vans.
Either way, if you’re going to buy, consider buying electric.
With cars and vans, you can charge your company a reimbursement expense of 45p a mile for the first 10,000 business miles that you travel in each tax year and 25p per

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Average small business made £300,000 selling on Amazon last year

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Originally written by Timothy Adler on Small Business
The average small business selling through Amazon made £300,000 in 2020, an increase of 50 per cent year on year.
In total, UK small businesses sold 750m products through Amazon last year, up by more than one third.
The number of small businesses selling through Amazon increased by 20 per cent to 65,000, as people shopped online during pandemic lockdowns.
>See also: As predicted, Amazon passes on 2% sales tax onto small businesses
Indeed, more that 1,000 UK businesses reached £1m in sales selling through Amazon last year.
And another 14,000 SMEs generated more than £100,000 worth of sales through the internet giant.
Amazon announced that around 60 per cent of all physical product sales on its UK store were from independent sellers, most of whom were SMEs.
And those small businesses have created 175,000 jobs across the UK fulfilling those Amazon sales.
Some 40 per cent of small businesses selling on Amazon were based in London and the southeast of England, and the five most popular product lines according to the 2021 UK SME Community Report included homewares, health, toys, clothes and beauty.
Exporters also thrived on the platform, Amazon said, seeing their collective overseas revenues rise by 27 per cent

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