Company vehicle tax - van or car

Wardy7

My dad currently has a company work van at the place he works and ha snow been offered the option of having a car instead.
He is after whichever one saves him the most money tax wise (fuel is not the issue).
He has been told that a company van you pay the tax on first £3,000 and just pay tax on first £2,000 on a car although he thought this was incorrent?

Is this correct, can anyone offer any advise or help please?!

Cheers
Wardy

Bean_Counter

This is incorrect.

Firstly, when you say that fuel is not an issue, does the company provide any fuel for private use at all?

The £3,000 tax on the van is correct assuming that there is no private fuel. If there is private fuel, add another £500.

This benefit is then taxed at his marginal rate, so either 22% or 40% depending on how much he earns.

The taxable benefit on the car depends mainly on the CO2 emissions. I would have thought that your father's work should be able to tell him. My colleagues ask me this all the time, so it's a fairly standard question to ask.

If you tell me the type of car, and answer the fuel question, I'll have a go at working it out for you.

robert_harper_2000

My friend at work, his Tax code has been reduced to 139L I suspect this is down to the work van. He rarely uses it for personal use. Can he do anything? He is driving a Suzuki Van

Bean_Counter

robert_harper_2000 wrote: »

My friend at work, his Tax code has been reduced to 139L I suspect this is down to the work van. He rarely uses it for personal use. Can he do anything? He is driving a Suzuki Van

Yes he can. If he only uses the van for work use and commuting to and from work, then no van benefit would apply. See this link about limits on private use.

Your friend should contact the tax office and tell them this and have the van benefit removed. I have found HMRC very proactive in adding the benefit randomly hoping to tax people anyway. Removing the benefit will save a lot of tax.

Let me know if you want me to expand on any of this as happy to do so.

robert_harper_2000

nope, seems to say it all. Fantastic, oh unless you have any ideas how the company would prove it is work and not private use.

Bean_Counter

robert_harper_2000 wrote: »

nope, seems to say it all. Fantastic, oh unless you have any ideas how the company would prove it is work and not private use.

Suit yourself. Works fine for the large fleet of vans I manage.

robert_harper_2000

Brill lol can't wait till I get back to work to call them! cool eh? lol