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Tax Man

Although van drivers typically pay less tax than the average company car driver, the taxman still likes his pound of flesh.

The Current Tax Position

You pay tax at a flat rate on the benefit in kind of having private use of a van provided by your employer. For vans less than four years old at the end of the tax year the annual bill for a 22% tax payer is £110, for older vans this falls to £77.

When private use is shared between drivers the bill is divided between them. This tax includes the benefit of any free fuel provided by the employer for private use of the van.

More details can be found by referring to IR136 at www.inlandrevenue.org.uk.

What Classes as a Van?

For tax purposes a van is built primarily to carry goods or other loads with a 'design weight' of up to 3,500 kilograms. It does not include vehicles such as cars, estates or minibuses, built primarily to carry people. Nor does it include heavier vans or lorries weighing more than 3,500 kilograms.

Is a Double Cab Pick-up a Van?

Double cabs can be a grey area because they can seat equivalent numbers as a car in comparable comfort. Because a growing number of business users have been swapping cars for double cabs to save on tax the Inland Revenue now classifies double cabs with a payload of less than 1000kg as cars for tax purposes.

A double cab with a payload in excess of 1000kg can still be classified as a car if the taxman dealing with the case decides it is a car. You may have to justify a genuine business need for the vehicle.

 

All endeavours are made for the information to be accurate, however we hold no responsibility for accuracy, all customers are responsible for seeking their own advise on current legislation.

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