Company Van use

[spence]

Because i get personal use of my companies van, worth about £1500. This ####### government now wants to change me £3000 a year for the privilege.

If it was a nice posh car I'd understand it but it's a dirty two seater van.

I have just about had it with this country!!!!!!!!!!!!!!!!!!!!

NO DOUBT IT'S GONNA BE SPENT ON...............Best i shut up now before i really loose my temper.!!!!                          

[Vinny's Westie]

This was announced a couple of years ago, before the last election but as usual this government gets away with it.    

[jeff oakley]

We have this issue with our vans at work. We pay a flat rate £200 for all our drivers as they get the van just to take home for security reasons. If you get the use, ie to use in your spare time whennot working, then yes you will be charged a flat rate for the van and then the fuel. If you do not use it a lot then you could consider giving it up, however I suspect this is not an option if you are an alarm engineer on call.

If you are based from home then it is harder for the tax man to prove benefit in kind if you keep a log for the mileage you cover on the job.

When I had my first company car it was a good perk, now I cover 60k per year on business and have no option transport wise. There was a sliding scale which reduced the tax by two thirds if you did more than 18k per year. This no longer applies so I get taxed on the cost of the car plus the emissions, plus the private fuel, all to cough up 40% tax to Gordon.

[Gromit]

Another fist up the    of the working man, courtesy of this bl**** government. Thank god i`ve no longer got a company vehicle of any form and I now own my own van. And they wonder why people are leaving this country in droves...now were is me ticket to Oz.

   

[Nick Algar - Competition Secretary]

Might be worth you guys checking the ruling, because my understanding is that you are OK with to and from work mileage to home. It's only if you use it for private usage outside of that.

[spence]

I only have one parking space at home and no other place to put another car so i can only have one vehicle.

If I leave the van at work it'll get broken into within minutes. Therefore this SCUM has stitched me and no doubt 10's of thousands of others up YET AGAIN!!!!!

The harder you work in this counrty the worse off you are.

WHY BOTHER!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

ARHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH!!!!!!!

Needless to say i'm a little touchy today.

Edited to say the westy is kept at my parents house 50miles away.

[smithydar]

ive got the same aswell.even though my van is used as a 24hr vehicle it dont seem to matter.but it isnt costing you 3 grand a year,

your just being taxed on 3 grand which works out around 600 quid a year that it costs you.

still sucks though.

to evade this all our company vans/drivers have had to talk to the taxman saying its used purely for work duties only.

crap hey seeing as ive used it for my own use for 6 years.now all of a sudden they change it. ******s just out to screw you yet again

darren

edited to add my van is full of my own tools to do my job and it costs me money.. ironic hey?

[Mark Stanton]

because my understanding is that you are OK with to and from work mileage to home. It's only if you use it for private usage outside of that.

I thought that was the case too - it is the property of your company who pay for fuel and upkeep for their business purposes which you undertake in works time - as long as you demonstrate that you have your own vehicle for your private use (in this case a Westfield     ) then how and why can you be taxed - if the van was kept in a company compound then you would not be liable for tax and if you happen to take it home for an early work start every now and again      

[Barry Ashcroft]

QUOTE

but it isnt costing you 3 grand a year,

your just being taxed on 3 grand which works out around 600 quid a year that it costs you

That's what I thought as I read the first post

I thought it was a flat fee of £500 before so not really a massive increase still a pain in the A*** I agree. But lets be real do we really expect anythng else from this lot.

I mate of mine worked for Mondeal Assist for Landrover assistance and they had Discovery's kitted out ala Rac style and the Inland Revenue wanted to charge them for benefit in kind for a 40k discovery even though it was esentially vital for the job now that is a s**t sandwich served cold.

[spence]

Think I'll be talking to the accountant tomorrow.

On the Inland Revenue form it say's three grand so if this is true it's really miss leading to say the least.

Cheers for advice

Spence

[Lurksalot]

I have a similar position , If the only miles you do in the van are to and from your jobs or depot then no tax is applicable .

However ,if your company allow you to go tthe shops , tip, and generally run around in the works vehicle you will have to pay tax on the 3000K that the tax man says is a benefit.

However I am the the boss and I don't let myself drive anywhere except on business .

I even buy my glass cleaner from sainsburys .

I have heard Mr taxman may take photographs of vans at supermarkets etc just to be b45t4rd5

But we'll see how it pans out

[spence]

Nice one lurksalot, i'm the boss as well so everywhere i go is business then    

Didn't think of that.

[neilb]

If you want to blame someone blame all the company car drivers that traded there cars for "4x4 vans" it that lot that highlighted the loop hole and now it being tightened up.  The bottom line is that even if you are paying tax at 40% you are still £300 up a year.

[Mid life crisis]

I only have one parking space at home and no other place to put another car so i can only have one vehicle.

If I leave the van at work it'll get broken into within minutes. Therefore this SCUM has stitched me and no doubt 10's of thousands of others up YET AGAIN!!!!!

The harder you work in this counrty the worse off you are.

WHY BOTHER!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

ARHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH!!!!!!!

Needless to say i'm a little touchy today.

Edited to say the westy is kept at my parents house 50miles away.

Not sure if the Tax man will allow this, but why don,t you treat the van as a private vehicle used for work.

i.e. Buy the van off the company for say £1000.00  get the company to pay you £200.00 per month for it's use to cover insurance etc, in your paypacket (taxable}.

Then claim milage allowance from the inland revenue at 40p for the first 10k and 25p thereafter. This then means you decide what is business and what is private milage.

Therefore if your business milage was 12000 per year, you will get back 40% of  £4500,......£1800    

     

[hixxj]

Being a nerdy bean counter the above does sort o work, but you need to be aware of a few things...

1. if you buy the van off he company, it needs to be at "arms length" and at market rates (just get a glass' guide valuation off tinternet for £3 and claim it was below average condition (most vans in my experience)

2. the £200 cover charge would be taxable as part of your salary

3. the allowance of 40p per mile (first 10,000 miles, then down to 25p for the rest), is tax free, but you need to keep petrol receipts and a fairly detailed account of your business miles.

The £3000 charge is the taxable benefit (ie you only get taxed on this amount (as per previous poster), so either £1200 for 40% payers or £660 for the basic band - but watch the class 1a nics if you are self employed.

The revenue (god love 'em) will allow you to take the van home for security purposes for no charge and will even allow for "occasional use" which they define as taking bulky items to the tip etc. but specifically don't allow the weekly shop.

I think that covers most things - if you ahev any more qn's I may be able to help

HTH

edited to add : oh and it helps prove you don't drive it personally (should you decide you don't drive it privately    ), if the van is signwritten.