company van tax

kitty1801

You have to pay tax on this as it is provided to you for private use - regardless of how much or how little you use it there is a standard charge applied.

You pay tax on it because it is a benefit provided to you by your employer. If I were to buy a van and keep it insured/serviced/MOT'd/ topped up with fuel it would cost me money so your employer is effectively paying for something on your behalf (an income).

You do not need to pay the benefit if you only use it for commuting and 'occasional' detours on the way. Your employer can explain this to you and if they agree there will not be a benefit to you, you should try to get something in writing.

I am sure there will be something on the HMRC website about this but if you prefer to speak to a real person, you can contact the employers helpline on 0845 7143 143 and they can advise you as to when the van becomes a 'benefit' to you.

Bean_Counter

stanmar wrote: »

can you tell me what is the 'incidental' amount allowed by HMRC.

Have a look at the van part of this link, amongst others, which seems to be the generally accepted definition.

Bean_Counter

For what it is worth, I commute in a van for this reason - to avoid the taxable benefit in kind and reclaim the VAT and have the costs tax deductible rather than run a car out of my already taxed income.

stanmar

You might be right, but empoyer is charging customer and the customer is paying for mot/tax/petrol ....and if I am paying 13p for every mile what kind of benefit is it?

For someone with no private car that is good solution, but for me not really.

If I am working 10-16 hours a day instead of driving home than pick up my private car to go do the shopping is not really possible or I am just to tired, that is why I am forced to use the van for "private use'' sometime. The other thing is I am not bing paid half an hour in the morning and this same in the evening as we were told than If I would have to come to pick up the van from th office I loose this time anyway. And that one hour a day is being treated as private use.And in this caseI do not thik it matters if use it private or not!!!

I do not mind paying this £160 and maby it is realy worth it, but to be honest I think than having van with me is more benefit for the company because I am getting to the customer earlier and I can do more jobs this way.

Well I am cnfused, I do not like it, but do I have a choice? :mad: :think:

kitty1801

If you are paying back 13p per mile to your employer then your total benefit will be calculated as the £3000 van charge + £500 fuel charge minus whatever you have paid back to your employer.

You ARE getting the van for private use so you DO have a benefit. I have to pay to run my car to get to and from work, just like everyone else has to pay to commute. The commute to work technically is not counted as a business journey, but company vans are a special exception.

I don't understand why you think your employer should pay you to travel to your work?

Anyway, bottom line is that you are getting a benefit from your employer and you should pay tax on it. If you do not want to be charged tax on this, hand it back to your employer and drive into work in your own car & pick up the van from there or stop using it for private use. Alternatively, if you can arrange with your employer to pay back all the private use costs, they do not need to declare the van as a benefit.

There is no getting around it, using a vehicle for private use, whether your own or a company one, will cost you money.

stphnstevey

Bean_Counter wrote: »

Have a look at the van part of this link, amongst others, which seems to be the generally accepted definition.

It says at the bottom of this link above

You are not required to pay us anything or record the value on any forms if you provide any of these benefits to an employee earning at a rate of less than £8,500 per year.

Does this include
a) Benefit in kind to employee £3000
b) Fuel benefit £500
c) Employers NIC

kitty1801

stphnstevey wrote: »

It says at the bottom of this link above

You are not required to pay us anything or record the value on any forms if you provide any of these benefits to an employee earning at a rate of less than £8,500 per year.

Does this include
a) Benefit in kind to employee £3000
b) Fuel benefit £500
c) Employers NIC

The £8,500 is just the employees annual salary.

stphnstevey

I meant, if the employee is earning less than £8,500, does this mean the three things I listed do not have to be paid at all?

kitty1801

If your annual salary is less than £8,500 the you do not need to pay tax on any benefits provided by your employer, such as car, van etc.

As NIC are not employer benefits they don't come into the equation.

stphnstevey

So as director of an Ltd, if I earned less than £8,500 salary, I would not have to pay anything in benefit in kind for a company van (even if the company pays ALL fuel and it is used for personal use).

But there might be Employer NIC to pay.