RE: Tax changes ahead for van drivers
Tuesday 5th April 2005
Tax changes for the Vauxhall AstravanBuying a van to reduce the tax you pay is set to become a thing of the past. From Wednesday 6 April, according to the Inland Revenue, the tax break that allows you to use the van for general as opposed to business motoring, changes.
Tax changes ahead for van drivers
Could this lead to less tailgating?
Tax changes for the Vauxhall Astravan
The Revenue reckons that employees who have private use of a company van and are currently charged with a benefit in kind of £500 (£350 if it's four or more years old) will have that charge reduced to nil if the van is used mainly for business travel, and any private use other than for journeys to and from work is insignificant. Confusingly, it said that home to work journeys are still considered to be private use, but the new rules allow employees to use their van for those journeys without paying tax.
Examples of what the taxman considers insignificant are someone who:
- takes an old mattress or other rubbish to the tip once or twice a year
- regularly makes a slight detour to stop at a newsagent on the way to work
- calls at the dentist on his way home.
But if you use it regularly for shopping or holidays, expect to receive the taxman's bill. Some say this could be as high as £3,000.
There could be a silver lining: it might cut the numbers of white vans tailgating in the outside lane at 70+mph.
Discussion
I think the connection is that lots of vans on the motorway are people using them for personal purposes. If this interpretation of the tax laws is correct, it would imply that some people would choose not to use their 'work van' for personal purposes due to the £3k cost. I doubt it will make much noticable difference though.
Sounds like an administrative nightmare - how (apart from checking all the mileage logs) are they going to know what the vans been used for 
Also, surely it won't change the numbers of tailgaters as the same people would be using their private car to 'get to' the company van, and they probably drive in the same fashion whatever....unles they are assuming they won't do it in their own car
Also, surely it won't change the numbers of tailgaters as the same people would be using their private car to 'get to' the company van, and they probably drive in the same fashion whatever....unles they are assuming they won't do it in their own car
I think this is closing the loophole that company car drivers jumped through then company car tax changed a couple of years ago. Shedloads of company car drivers changed to double cab pick ups when company car tax increased, but commercials were left alone.
It will bring them to their senses and make them realise what a noisy uncomfortable truck they're driving.
It will bring them to their senses and make them realise what a noisy uncomfortable truck they're driving.
As I understand it, you pay tax on a company car for personal use even if you never use it for non-business travel (I've had this discussion with my fleet management dept so I hope they're right). While completely iniquitous, at least you know where you are.
However, how would you know whether a van has been used for personal travel? So would the IR assume it has unless you can prove otherwise? Was this in the budget? I don't remember it being in the speech?! Guilty unless proven innocent is the order of the day elsewhere so perhaps that's the plan here? A lesson in how to cheer up your core vote just before an election!
However, how would you know whether a van has been used for personal travel? So would the IR assume it has unless you can prove otherwise? Was this in the budget? I don't remember it being in the speech?! Guilty unless proven innocent is the order of the day elsewhere so perhaps that's the plan here? A lesson in how to cheer up your core vote just before an election!
A silly narrow minded view of commercial light vans/drivers........which I believe came out of a survey as the least likely to kill pedestrians (Buses were most likely!). They often tailgate lane hoggers in both outside and middle laes as we all want our goods & services delivered yesterday!.
Its all down to the double cab pickups.... they have 5 seats 4 doors, leather seat, air con and attract little in the way of tax burden. blinking things.... says he with a commercial Discovery.... but at least mine has only 2 seats...
I belive its the tax burden that rises from 500 quid (so 110 quid on basic tax or 200 on high rate) to 3000 (so 660 quid or 1200 quid...)
ho hum just somewhere else that the cash in my pocket has gone down every year for the last 5 years...
I belive its the tax burden that rises from 500 quid (so 110 quid on basic tax or 200 on high rate) to 3000 (so 660 quid or 1200 quid...)
ho hum just somewhere else that the cash in my pocket has gone down every year for the last 5 years...
[quote]But if you use it regularly for shopping or holidays, expect to receive the taxman's bill. Some say this could be as high as £3,000.[/quote]
"some"? - It is the Inland Revenue themselves, bless them, that say this. From April 2007 £3000 for private use of van and £500 for private fuel in said van. It's in the employers 05 manual.
"some"? - It is the Inland Revenue themselves, bless them, that say this. From April 2007 £3000 for private use of van and £500 for private fuel in said van. It's in the employers 05 manual.
Also its not exactly news... they anouced it about 2 years ago...
I do love the way this govt announces things and puts off implementing them untill you've forgotten about it then BANG your broke....
Still I hate to think how much tax i'd pay on the disco if it was classed as a car
G
p.s. just dont tell them about the vat :doh:
I do love the way this govt announces things and puts off implementing them untill you've forgotten about it then BANG your broke....
Still I hate to think how much tax i'd pay on the disco if it was classed as a car
G
p.s. just dont tell them about the vat :doh:
I used to drive a white merc sprinter and even though it had no rear windows which means anyone behind could not see through it, I was constantly tailgated by cars so close I could only just see them in my mirrors. And this was at speeds of 90 to 95 mph! Once the trafic in front anchored up and I moved into the middle lane. The black Laguna behind accelerated when I moved over (at 85 mph)with obvious consequences.
Peter Ward said:
As I understand it, you pay tax on a company car for personal use even if you never use it for non-business travel (I've had this discussion with my fleet management dept so I hope they're right). While completely iniquitous, at least you know where you are.
Well, under the rules, your commute to work ("usual" place of work, not a clients or a different site) is personal use - if you didn't have the perk of a company car, you'd still need to make the journey.
So the only way a company car isn't taxable is if it's a pool car based at one of the company's offices, bookable/usable by a number of employees, and only taken home overnight when necessary to facilitate a more effective journey in the morning.
If your company gives you a company car to put on your drive at home overnight, you pay for it...so you'd better make sure you get unrestricted use of it!!!
work are going to opt for the nil tax bracket bit of a result as i hardly use the van for personal use. NElmslie said:
Once the trafic in front anchored up and I moved into the middle lane. The black Laguna behind accelerated when I moved over (at 85 mph)with obvious consequences.
That was very good of you not to warn the traffic behind
Hope you are proud of yourself
Just sums up white van drivers really
byff said:
I was constantly tailgated by cars so close I could only just see them in my mirrors. And this was at speeds of 90 to 95 mph!
You wern't going fast enough
In a sprinter? he wasn't even trying! genuine 3 figures are possible in them and that is read with a GPS and at over 3tonnes too
I have a company van and opted out of the company car scheme which got me the ZT260, the way my van is designed it cannot be used for anything other than company business ... oh and I do have to visit cornershops with it too
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