Hit Hard By The New 4x4 Car Tax!!!

top_banana

MarkyMarkD wrote: »

I think that someone who doesn't have a car of their own will have NO chance of proving no personal use of a vehicle which they park outside their own house every night.

I'm confused by Driving to and from a permanent place of work, i.e. commuting, definitely IS personal use and therefore taxable. It is only in the circumstance where you don't have a permanent place of work that travel from home to work can possibly be considered business use.

According to the Inland revenue http://www.hmrc.gov.uk/vans/van-facts.htm

You can travel to and from work and be exempt:


Tax on Company Vans - Changes from 6 April 2005 A fact sheet for employees

From 6 April 2005, a lot of people will no longer have to pay tax on their company van. You will only pay tax if you use the van for private journeys other than journeys between home and work. If you are affected by this, please talk to your employer then get in touch with us so we can change your tax code to make sure you pay the right amount of tax.
What if I only use the van for work journeys?
If the only journeys you make in the van are work journeys – for example, delivering goods or making calls to customers – there is no tax charge.

What about journeys between home and work?
If you mainly use the van for work and the only journeys you make in it are work journeys and travelling between home and work, there is also no tax to pay.
How can I show there is no other private use?
Your employer must be able to show to the Inland Revenue that you don't have to pay tax. This means you could be asked to
· keep mileage records
· sign an agreement about the van use
· have use of the van put into a contract of employment.
Other private journeys
If you do make other private journeys in the van, you will be charged tax for this. However, if this private travel is insignificant (like taking an old mattress or other rubbish to the tip once or twice a year) then you will still not have to pay any tax.
If you are charged tax, the amounts you will have to pay tax on (normally collected using your Pay As You Earn (PAYE) tax code) are:
Year Age of van Amount included in your tax code Tax at basic rate
2005/06 under 4 years £500 £110 - payable
4 years or more £350 £77 - payable
2007/08 all vans £3,000 £660 - payable
The amount is reduced if you do not have the van for the whole tax year, if someone else also uses it for private travel, or if you pay something for using it privately.
Fuel for the van
If your employer lets you have free or subsidised fuel for private use, you will have to pay extra tax from 2007/08. For a basic rate taxpayer this will mean paying tax of around £110.
Year Amount included in your tax code Tax at 22% basic rate
2005/06 nil nil
2007/08 £500 £110 - payable

So if you have a van and free fuel £770 per year = £64.17 per month

MarkyMarkD

Thanks for the clarification - out of date tax knowledge is a dangerous thing.

I would stand by the fact that someone who actually doesn't have another vehicle is likely to make private use of their van, and hence incur the tax charge. As your quote points out, they may be required to prove (via mileage records etc.) that they have not used the vehicle for private purposes - which they are unlikely to be able to do if they don't have alternative transport.

By the way, another post reads "what's the benefit of taking the van home?"

For many people, quite a lot - home to work mileage is a huge proportion of the mileage travelled for many people, and it's saving you loads of wear and tear on your own car (if you have one) or maybe even the need to have one at all (if your spouse has one, say). It was blatantly under-taxed at £500.

top_banana

Does anyone know if Van tax was affected in the budget?

Thanks

shelovestobuystuff

No change on this in the budget as far as I can see.Just the increased road tax on gas guzzlers.We dont pay the road tax on works/company vehicles anyway.

shelovestobuystuff

Just had a phone call from hubby and it looks like our panic is over as far as the hike in company van tax is concerned.He went to employer and asked for a better vehicle and a payrise to cover his increased costs and he got it!!!
An extra £1000 a year from this April and a proper 4 door vehicle that we can actually use as a family car too.
If you don't ask you don't get!!!

Sus1e

shelovestobuystuff wrote: »

The 4x4 is no use for personal use anyway,its only a 2 door vehicle,its got the usual 2 static seats and 2 fold down ones in the back, but the thing is always too full of work equipment to fold these down..

From the sound of this it is a Landrover Defender.

This is permanent 4WD and is over the 1 tonne payload.........

I would suggest that you investigate whether you should have been paying tax on it at all.

Kinnairdy

The new taxation classes apply to all PLG (Private Light Goods) vehicles.
If it is classed as LGV (Light Goods Vehicle) road tax is £175.00 this year rising by £5.00 a year for next 3 years.
LGV's (or light commercials to give them their other name) are not subject to the same classification as so called 4x4 gas guzzlers, (which is a deliberate misrepresentation by the media of the true vehicle taxation system).
Any vehicle producing more than 225 (g/km) CO2 Emissions will pay the highest road tax ie £300-400 per year, eg. this could be a Mercedes, BMW, Audi saloon and is not restricted to the 4x4 owner.

The link below to the Direct Gov web site explains the different taxation classes and prices for PLG vehicles.

http://www.direct.gov.uk/en/Motoring/OwningAVehicle/HowToTaxYourVehicle/DG_10012524

shelovestobuystuff

Sus1e wrote: »

From the sound of this it is a Landrover Defender.

This is permanent 4WD and is over the 1 tonne payload.........

I would suggest that you investigate whether you should have been paying tax on it at all.

Ooh wish it was!I had to check with hubby what type it is.Its a Mitsubishi Crewcab(quite nice,looks like a toyota hi-lux but not as comfy).We are supposed to be getting the 4 door version instead soon so we can use it for the family too.

rdwarr

Kinnairdy wrote: »

The new taxation classes apply to all PLG (Private Light Goods) vehicles.....

http://www.direct.gov.uk/en/Motoring/OwningAVehicle/HowToTaxYourVehicle/DG_10012524

...fortunately only those registered from 2001 onwards. My fleet of ageing gas-guzzlers would all be in Band G otherwise.

huggermugger

Altarf wrote: »

So people who previously had a Mondeo or Vectra now had a Nissan Getoutofmyway.

OOO - where can I get one of those? :cool2: