Company Van - a forgotten perk?
Although the taxable benefit for using your employer’s van for private journeys is to increase by 700% from 6 April 2007, a company van may still be substantially cheaper than a company car. For example, the benefit of a car could be as high as 35% of the original list price – for a £30,000 vehicle with high CO2 emissions the benefit would be £10,500, compared with a fixed rate benefit of £3,500 for a van.
Or course, doing the supermarket dash in a transit van is not as classy as turning up in the latest German-made saloon. Children may also be less than impressed when dropped off at school from the back of a pickup truck.
But what if there was a truck that offered the performance and luxury of a car with the taxable benefits of a van? Does such a vehicle exist? Sadly no.
Several clients have approached us with the idea of buying a double-cab pickup to replace their usual family car. These vehicles have an extra row of seats and sometimes have 4 doors capable of being opened independently.
In the words of the Revenue “there is nothing about these vehicles that renders them unsuitable for private use”. Therefore, unless they are designed primarily for carrying goods or burden, the Revenue are unlikely to accept that they are vans for the purposes of the benefit-in-kind charges and the normal car benefits will apply.
Nonetheless as a second vehicle is the van worth a second look?
Date: 12th June, 2007
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