Work van as personal transport

[jonnynine11]

If I use my work van as personal transport what tax would I pay? I have 4 kids and was thinking if I get a kombi as my next vehicle I could carry them all in that but would there be a huge tax bill. I currently pay £3500 tax for my van as personal use, thanks for any help.

[Baz Tench]

This was queried a few years back with my employers. I think the figure then was approximately £600.

[STURBO]

You will be taxed on a beneift in kind of £3500.
So if you are a 20% tax payer you will see £700 taken from your net wages.

[skip_1]

STURBO said:

You will be taxed on a beneift in kind of £3500.
So if you are a 20% tax payer you will see £700 taken from your net wages.

This.

[F i F]

However HMRC due to being a set of miserable clowns are having a complete review of this, as they believe some people are driving around in their vans for pleasure.

http://www.fleetnews.co.uk/news/2011/2/17/tax-stat...

[skip_1]

F i F said:

However HMRC due to being a set of miserable clowns are having a complete review of this, as they believe some people are driving around in their vans for pleasure.

http://www.fleetnews.co.uk/news/2011/2/17/tax-stat...

That doesn't affect the question asked and the answers given, in that they are just asking companies what procedures they have to prevent undeclared personal use?

[F i F]

skip_1 said:

That doesn't affect the question asked and the answers given, in that they are just asking companies what procedures they have to prevent undeclared personal use?

But it might in the future, which was the point of the post. Forewarned and all that.

[skip_1]

F i F said:

But it might in the future, which was the point of the post. Forewarned and all that.

Maybe, but it won't affect the next tax year at least.

[jonnynine11]

Thanks so would that be the £3500 plus another £700 or could it be more than this if they want to tax me more? How much would I be taxed on a car if I bought a van personally?

[Fort Jefferson]

I use my work van (Astra 1.9cdti sportife) for personal use, but because the mileage I do is classed as "insignificant", I pay no tax.

[STURBO]

jonnynine11 said:

Thanks so would that be the £3500 plus another £700 or could it be more than this if they want to tax me more? How much would I be taxed on a car if I bought a van personally?

If you are a standard rate tax payer then the total cost to you will be a £700 charge.

The £3500 is the "taxable benefit". The amount you owe depends on your marginal tax rate. If your marginal tax rate is 20% then you will be charged £700.

In other words HMRC think you get a benefit of £3500 (due to free use of van) so they tax you on that.

[mph1977]

F i F said:

However HMRC due to being a set of miserable clowns are having a complete review of this, as they believe some people are driving around in their vans for pleasure.

http://www.fleetnews.co.uk/news/2011/2/17/tax-stat...

due to the amount of high spec crew cabs being put as company cars no doubt, not only 4*4 but vans ...

[STURBO]

jonnynine11 said:

If I use my work van as personal transport what tax would I pay? I have 4 kids and was thinking if I get a kombi as my next vehicle I could carry them all in that but would there be a huge tax bill. I currently pay £3500 tax for my van as personal use, thanks for any help.

Sorry, just re read the original post.

I don't think you do currently pay £3500 in tax. I think you currently only pay £700 in tax. Unless your employer has done their sums wrong.

Currently van tax is not defendant on type / cost of van, so there will be no tax changes if you get a Kombi.

[F i F]

mph1977 said:

due to the amount of high spec crew cabs being put as company cars no doubt, not only 4*4 but vans ...

could be wrong but suspect this survey is preliminary to a major change in the rules, all wrapped up in carbon dioxide flavoured excuses.

[jonnynine11]

It's my own company based at home. Just filled out a tax credits form and the accountants told me the tax on the van was £3500. Thanks for the info I'll check with the accountant to see if I'm paying the correct amount

[wildone63]

Fort Jefferson said:

I use my work van (Astra 1.9cdti sportife) for personal use, but because the mileage I do is classed as "insignificant", I pay no tax.

So how low is your personal mileage for it to be classed as insignificant?
and who has decided that your milage is insignificant your employer or HMRC?
Just wondering because i have use of a company van.

Edited by wildone63 on Sunday 27th February 17:46

[jonnynine11]

I was told to keep a log of mileage between each work job and to and from home/work. When the accountant looked at it, picking kids up from school etc was deemed more than insignificant.