2007 Commercial Vehicle Company Car Tax Changes

[Plotloss]

Anyone have a handle on whether Brown's commercial tax changes are going ahead?

Or what the modified rules are?

[SKR]

My understanding is that from April 07 if you have a commercial vehicle avalible for private use, i.e. take it home at night, you will pay the tax based on a fixed benefit of £3000.

[WWESTY]

What he ^^ said.

[Plotloss]

So your liability will be your tax percentage of £3K rather than the flat rate £400?

[WWESTY]

Plotloss said:

So your liability will be your tax percentage of £3K rather than the flat rate £400?

[philelmer]

So how does that work? For example, if you buy a £10k van to use for business but you take it home at night and have use of it at home too, you pay how much per year?

I didn't find anything on the HMRC website that explained it, maybe one of you could help?

[Eric Mc]

£3,000 muliplied by your top rate of Income Tax.

However, some "incidental" non-business use is now allowed and I have a feeling that the home to work journey will now be no longer considered as "non-business". Also, using the van for the odd trip to B & Q or the local "recycling centre" will also be ignored for tax purposes. Obviously, using the van as your daily driver will still qualify as non-business.

[sjc]

Eric Mc said:

£3,000 muliplied by your top rate of Income Tax.

However, some "incidental" non-business use is now allowed and I have a feeling that the home to work journey will now be no longer considered as "non-business". Also, using the van for the odd trip to B & Q or the local "recycling centre" will also be ignored for tax purposes. Obviously, using the van as your daily driver will still qualify as non-business.

Thats exactly how it was explained to me by my accountant when we recently purchased a van for an employee.

[Eric Mc]

Phew

[WWESTY]

sjc said:

Eric Mc said:

£3,000 muliplied by your top rate of Income Tax.

However, some "incidental" non-business use is now allowed and I have a feeling that the home to work journey will now be no longer considered as "non-business". Also, using the van for the odd trip to B & Q or the local "recycling centre" will also be ignored for tax purposes. Obviously, using the van as your daily driver will still qualify as non-business.

Thats exactly how it was explained to me by my accountant when we recently purchased a van for an employee.

I'm sure I have read somewhere that they specifically state that travel to and from work, in a van, is now considered allowable.....so why can't you do that in a car...???

[Eric Mc]

Because it would open the floodgates to claims for millions of commuters - which they will never do - especially in the current climate where they want to DISCOURAGE people from using their cars. Maybe they should provide tax incentives for using public transport.

[WWESTY]

Eric Mc said:

Because it would open the floodgates to claims for millions of commuters - which they will never do - especially in the current climate where they want to DISCOURAGE people from using their cars. Maybe they should provide tax incentives for using public transport.

......sorry Eric....was more of a rhetorical question....I know exactly why they wouldn't..... Its just interesting that as a van driver you are allowed to commute for free when you can't in a car.....I'm sure there must be a discriminatory claim in there somewhere.......