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Chartered Certified Accountants
and Business Advisors

01530 267320

Is it a Car or is it a Van?

The argument about whether a vehicle is a company car or van is back. It’s the differential in tax payable on company vans versus company cars that has made it attractive to try to ensure that a vehicle is classified as a van rather than a car. The private use van charge for 2018/19 is £3,350, whereas for a car it can be as much as 37% of the list price. There was a recent case with Coca Cola that ended being confusing for HMRC. Coca Cola began to offer their technician vans with an additional row of seats for their own private use, arguing that they were still vans as they were constructed primarily to carry goods. They won one model and lost two, and the whole case centred around the technical design of the vehicle.

 

If you have any company vans with two rows of seats you can’t simply rely on the DVLA classification that it is a van not a car. If you need advice before you do your P11d’s talk to Sence!

30 Jul 2018

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As long as we are in business, we shall continue to use Sence accounting.

Lucy Jackson
Lucy and Nicky Jackson

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