company van tax

kitty1801

That's the legislation as it stands at the moment but hopefully HMRC will try to tighten up this (and the dividend) tax dodge a some point in the future.

Bean_Counter

stphnstevey wrote: »

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

I believe that when looking at the £8,500 limit, you have to include the value of the benefits i.e. salary plus benefits need to be less than £8,500.

stphnstevey

When looking at the legislation again, it does say 'earning over £8,500 OR is a director' so I am guessing that the earnings limit doesn't apply to directors.

kitty1801

stphnstevey wrote: »

When looking at the legislation again, it does say 'earning over £8,500 OR is a director' so I am guessing that the earnings limit doesn't apply to directors.

Thanks for that stphnstevey. My taxes training was done a while ago and to be honest I have never come across someone that this rule applies to hence the error. Thanks for correcting me!

stphnstevey

kitty1801 wrote: »

Thanks for that stphnstevey. My taxes training was done a while ago and to be honest I have never come across someone that this rule applies to hence the error. Thanks for correcting me!

Not specifically correcting you - correcting myself really

stphnstevey

Just looking at this beifly again

For a Ltd owned by it's directors, a company van is just about the same tax as a company car now? There is no real benefit to a company van anymore?

Murphy_The_Cat

stphnstevey wrote: »

Just looking at this beifly again

For a Ltd owned by it's directors, a company van is just about the same tax as a company car now? There is no real benefit to a company van anymore?

there is if you went for something like a Dodge Ram-10 !.
FWIW, I always understood that the £8500 was made up of your salary PLUS any benefits in kind.i.e Company Car.

Murphy_The_Cat

jimmo wrote: »

For directors a company car will attract a benefit charge as will a company van.
However, commuting in a company car is private mileage but commuting in a company van is not.
If you are a director and can arrange your affairs in such a way that you use a company van for commuting but never use it privately you can gain some advantage from using a van but if the reality is that you can only afford to run one vehicle and have to do some private mileage in it such as shopping then you will have a benefit charge.

That is of absolutely no value to me, but may be useful to someone else on here.
jimmo, is that the current ruling and fact or is it AFAIK and/or your interpretation ? After recently being in a 'discussion' with a HMRC Inspector over her 'interpretation' of the rules, I'm now very aware of the differences between the two:beer:

Bean_Counter

jimmo wrote: »

What has never changed is that directors are always caught.
For directors a company car will attract a benefit charge as will a company van.
However, commuting in a company car is private mileage but commuting in a company van is not.
If you are a director and can arrange your affairs in such a way that you use a company van for commuting but never use it privately you can gain some advantage from using a van but if the reality is that you can only afford to run one vehicle and have to do some private mileage in it such as shopping then you will have a benefit charge.

I believe that this is exactly the case, and I utilise this at a personal level by running a company van for commuting.

It looks we are having a visit from the PAYE bods in the next few weeks, so we will find out then!

Murphy_The_Cat

jimmo wrote: »

Sorry, I’m struggling to see what you are struggling with. Is there a specific part of my post that leaves you cold?
Just by way of background I retired as an Inspector of Taxes in 2006 shortly before I joined this forum. In my early days on this forum I used to advertise the fact that I was a recently retired Inspector of Taxes but dropped that as time went by.
In my last 7 years in the job I was a Capital Gains Tax specialist but for 6 years before that I was a Schedule E specialist concentrating on benefits in kind.
Things move on, and in this case the vans legislation has moved on quite a bit, but I like to think I have kept up to date.
Therefore I think the strict answer to your question is that my post is AFAIK.
I like to think that my AFAIK is pretty good but that is all it is.

Hello jimmo
I feel that I feel that I need to apologise to you for the tone that my post took. My choice of wording was as best unclear and at worst unpleasant. This is what I meant to say
"Thanks for that jimmo, whilst I have a Company Car and always will have, the tax situation for a Company Van does not apply to me, but for someone that does use one I can see how useful it would be.
jimmo, is that the current ruling and fact or is it AFAIK and/or your interpretation ? After recently being in a 'discussion' with a HMRC Inspector over her 'interpretation' of the rules, I'm now very aware of the differences between the two. I only say this because any 'grey' areas that you use, if taken to task by a HMRC compliance inspector can be very, very hard to explain. & if they are not satisfied by your explanation, it can be hugely expensive, both for you and your employer. Tread VERY carefully with your mileage logs for what is/isn't business/commuting mileage & private mileage. If you use your van/pickup at the weekend to take the family on a trip to the seaside and you get 'caught' be ready for soem 'tricky' questions. :beer:

I feel that post is a lot closer to what I originally wanted to say