Company Car Tax on vans and double cab 4x4.

A higher rate of company car tax came into force in April 2007. It seems that the last chancellor - Mr Brown lest we forget! - had a funny feeling that double cabs and vans were being used in a private capacity somewhat! Perhaps it was a trip down to his local golf club or water sports area that convinced him of this. No matter, the point is, that if you use your van (for which read pick up truck - 4x4 double cab or not) just for one private trip (Tesco's etc) then you are liable to the new company car tax that came into force in April 2007 which is applicable to the use of vans and now, the popular pick up trucks in various formats.

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.

Company Car Tax on vans and double cab 4x4.

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