Fleet News

Companies unprepared for van tax hike

Research has revealed that almost a quarter of companies operating van fleets are unaware that the benefit-in-kind tax charge on company vans will increase, unless they can prove their vans are only used for business and not personal use.

Twenty-three per cent of companies questioned in a survey, commissioned by vehicle tracking specialist Navman Wireless UK, admitted to being ignorant of the government tax hike that comes into force this April. The tax charge on company vans will rise from £500 to £3,500 if proof cannot be provided.

The survey also revealed that, of those that are aware of the increase, around a third (32%) are failing to take steps to provide evidence of when, where and how a vehicle is used.

The scale charge for unrestricted private use will increase to £3,000 and if an employer provides fuel for unrestricted private use, an additional fuel charge of £500 will apply.

Furthermore, companies will have to pay more in employer’s NI contribution if they cannot prove how many private miles their fleet does – 30% of those questioned however said they were unaware of this fact, and 27% of companies said they were unable to prove in any case how many private miles their fleet does.

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