This follows the introduction of the benefit-in-kind tax on company vans which are used privately which increased by 600% from April.
The increase affects any driver who uses a company van for private purposes and there are only two circumstances where the charge will not apply – firstly, if the employer strictly prohibits private use, other than travel to and from work, and secondly if any private use is “insignificant”.
Paul Jackson, managing director at The Miles Consultancy, said: “The tax legislation will result in large tax bills for those drivers who think they have the ‘perk’ of private usage from a company vehicle.
“However, it could be that they will simply be better off by restricting the private use of company vans to work journeys only.”
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