Are there tax advantages to buying a van on Hire Purchase?

Yes, there are several worth knowing about. You can claim 100% tax relief on all interest charges paid under the agreement. The van itself is also recorded as a company asset on your balance sheet, which means it can be offset against your taxable profits. If you are VAT registered, you can also reclaim the VAT on the deposit. We'd always recommend discussing the specifics with your accountant or tax adviser first.