Fleet News

Telematics: System helps avoid BIK tax problems

The Miles Consultancy is set to help company van drivers reduce their tax risk through the use of its mileage capture system.

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.”

  • Visit www.themilesconsultancy.co.uk.
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