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The current company car tax rate for commercial vans and pick
ups, simply means that you have to pay tax on £3000 for this private use. (It
used to be just on £500). You don't have to actually pay £3,000, just the tax on
it. If you pay tax at the standard rate of 22%, then you will have an
annual tax bill of £660.00 which covers your private use. If you pay tax at 40%,
then your additional tax bill will be £1200 pa.
Oh! There is another little matter. If your company pays
for/provides the fuel, then you have to stump up a further £200.
One way around this - if you own the company - is that you can
privately own the car (VAN!) and charge your company at 40P per mile - up to the
first 10,000 miles in any one year. (So that's £4,000 (tax free) that you can
claim - providing you do the mileage of course!) After that first 10,000 miles
per annum, your mileage rate drops to 25p per mile!
If you are self employed, then non of the mileage allowance is
applicable is applicable!
You may also find this section helpful!
VAT on commercial
vehicle purchases.
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