Fleet News

Telematics: tax explained

A jargon-free booklet explaining the recent changes to benefit-in-kind (BIK) taxation on vans provides fleet operators with a comprehensive and impartial guide to the business risks and financial implications associated with the new legislation.

Published by integrated telematics provider Eagle-i, the booklet, BIK Explained, has been written by Fleet Van’s own editor in chief John Maslen, an Associate Member of the Institute of Car Fleet Management and co-author of Driving at Work 2007.

David Heaton, employer consulting group partner at Baker Tilly Tax & Advisory Services, commented: “As the new booklet points out, the tax rules on vans have been changed this year to make them fairer, but the six or seven-fold increase in the amount of tax and NIC at stake will inevitably mean that HMRC auditors will take more of an interest.

“Some 48 pages of guidance have been added to internal manuals of the HMRC on the subject of private van use, so the indications are that active investigations will be carried out by auditors.”

Ian Walmsley, chief executive of Eagle-i added: “Recent feedback from fleet operators suggests there is a great deal of confusion surrounding the new BIK van charges and what does or doesn’t constitute HMRC compliance.

“Best advice from leading employment taxation specialists indicates that simply banning private use of the van is not sufficient to avoid the BIK charge. This booklet provides fleets with the facts and options needed to make an informed decision.”

  • To request a copy call 01928 795400, email enquiries@eagle-i-telematics.com or visit www.eagle-i-telematics.com.
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