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Yes it is all very well lowering your tax bill but it is still less money in your bank account. As far as reducing down time (fewer breakdowns with new gear) goes, i would do as Mr Mib above and have enough gear to cover this. I'm sure that new machinery loses value as soon as it goes out the dealers door - much the same as new cars. I find that hard to swallow personally.
I do tend to buy new most of the time but i keep things until the end of their life (after a few repairs along the way). i must admit to enjoying tinkering with machinery and it does get done when i have more time around this time of year.
However, if you are trying to stay out the 40% tax bracket then go ahead and splash on something new and shiny.
" I'm sure that new machinery loses value as soon as it goes out the dealers door - much the same as new cars. I find that hard to swallow personally".
Stuart, oh so true mate. The last thing I bought brand new was my motorbike, it cost me £8500.00, didnt like it after 6 months and looked into selling it, it had lost over £1800.00 in 6 months, that really "stuck in ma craw" as we say up here. Needless to say the bike grew on me and I still have it after 12 years :-).
For me good quality used and plenty of it to back you up is the best option.
Most of my tools have been brought new on similar advice from my accountant - and the fact that I can reasonably expect the full life of the tool, However I have brought a KM85R engine as a back up for my Kombi system, and a Lawn mower second hand, and these have performed admirably, and required nothing more than the same Service I give to my newer tools.
It is just a case of Buyer Beware - You may buy a lemon, and make sure you check over the tool first, ask to check the tool first - IE compression, assurances that the cylinder isnt scored etc etc - and as Brian said alot of dealers give you warranty on their re-furbished machines - Removing some of this risk.
Brian,
I can completely see the point yourself and others are making. Makes sense for you to have plenty of backup kit when you have such a big set up. I have previously bought second hand kit and it has mostly gone well, but what my accountant was trying to impress on me was that the difference in cost isn't that great when it comes to paying your tax bill.
I'm in a v different scenario also as currently a sole trader with much smaller set up and living in a flat I don't have a lot of room for back-up kit. Horses for courses I guess.
www.mibservices.co.uk said:
I guess Ive been lucky with my kit, not much issues with it letting me down ( touch wood and fingers crossed ). Lol
If I know someone who knows about the items, we'll pay them to check over second hand items, otherwise buy new.
We need a compact tractor/forklift...the next door neighbour is a genius with this type of kit. New we would have to spend IRO of £30K, second hand we can get away with a tenth of that.
I agree with Richard. I suppose with the years you learn to do the calculations - no rules.
but just to add a story, that i got from a sales man once.
2 farmers cousins that lives on the other side of the country,
meet each other at a festival once a year.
'' I like your new hat'' said the first '' but It seems too dear buying a new hat every year
so once a year I buy a used one for 50 pounds.''
He added ''You must be doing well in your farm, as I see you every year with new a hat on ''
'' oh, yes I enjoy to wear the newest fashion and the smart look, but money wise , I buy a new one for 100 pounds every year and ... sell it in the end of the year for 50 pounds''
What hat would you like?
ofer
This is a biased story, probably told by a hat-seller. It misses out the 3rd farmer, who buys the second farmers used hats for £50 and keeps the same one for 5 years. He pays 20% of what the other farmers pay per year for the priveledge of having a hat. It may get a bit tatty but it still keeps the rain and sun out of his eyes.
Ofer El-hashahar said:
Yes and its also about hats, not contractors plant and machinery.
Dan Frazer Gardening said:
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