Fleet News

Van tax consultation ends

INLAND Revenue officials are analysing responses to the consultation on changes to van taxation, which ended last week.

The consultation includes proposals to link taxation to the level of private use of vans and to make drivers pay more on older, less environmentally-friendly vehicles, effectively scrapping the current £500 tax band.

It is hoped that if introduced the proposals will reduce the number of people choosing double cabs and using them as company cars, and reverse the tax breaks currently available for using older vans.

Plans were also put forward to introduce a fuel benefit charge for drivers who receive free fuel for private mileage, similar to the charge imposed on company car drivers. Other proposals include changes to the charging provision for shared vans to reduce the administrative burden on employers. The change would simplify procedures for record- keeping for businesses employing the 40% of staff who have private use of a shared van.

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