Re: Query-tax on company vans??
- From: "Ozzie" <black.hole@xxxxxxxxxxxxx>
- Date: Thu, 30 Mar 2006 17:33:53 +0100
Hello
I have been checking what taxes are levied on use of company vans.
It appears that in the tax year 04/05 if a company van is available
for use i.e you take it home at night and use it just for commuting to
and from your place of work and the vehicle is less than 4 years
old,the charge is £500. On the hmrc website it then goes on to say
that if you pay tax at the basic rate it is (£500x22%)= £110. So then
,are we saying that the basic rate taxpayer has to pay HMRC £110 per
year?.
How is this amount collected? Does the individual have to declare it
or is it up to his employer to declare it?. How is it collected i.e as
a lump sum at the end of the tax year or in monthly payments?.
Is the onus/responisbility on the individual to complete and annual
tax assessment and pay the money to HMRC himself?
Also i beleive the situation is changing in tax year 05/06 so that
there is no tx charge if the van is only used for commuting to/from
work?
What you say is correct until April and £110 is usually collected PAYE
for employees.
Personally ,after many van years, I'm returning to a car in April because
unless the van has ' insignificant or no private use' it will be taxed as
much as a car.
You have the option to declare insignificant private use , usually done via
the employer, having no tax liability.
'Available for private use' doesn't apply with vans , even from April.
Chris
.
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- Query-tax on company vans??
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