Fleet News

End of the road for car drivers who use double–cab pick-ups to lower BIK tax?

For employees who are allowed unrestricted private use of their vans, the benefit in kind charge will remain at £500 (£350 for older vans) for 2005/6 and 2006/7.

From April 6, 2007, the benefit-in-kind charge for employees who have unrestricted private use of vans will rise to £3,000, with a further charge of £500 for employer-provided ‘free’ fuel for private mileage.

The two-year delay gives drivers time to switch out of their current vehicles in the natural fleet replacement cycle, as long as they are warned of the change by their fleet managers.

However, the increased tax liability is still relatively low compared with some conventional cars of a similar price.

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