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Friday, 30 December 2011

Taxing use of company vans

HMRC is reported to be increasing its monitoring of the use of company vans amid concerns that insufficient tax and NI contributions are being collected. More information can be found here on chartered accountants Dains LLP's website. Using a company van for private purposes should be charged to tax as a benefit in kind at £3,000 a year. The rules that apply to vans are not as strict as those for cars, an in particular private use of vans can be considered 'insignificant' and therefore tax-free. What is "insignificant" is like the length of a piece of string - but if private use isn't even governed by a policy, or being monitored, it's even more meaningless. Back in September HMRC sent questionnaires to a number of employers covering these issues and other aspects of company van use. Some sizeable tax (and NI) bills might be the result.

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