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Who is likely to be affected?
- Employees provided with a van that is available
for their private use and employers who bear
Class 1A National Insurance on the taxable
benefit of a provided van.
General description of the measure
- The Government is announcing a forthcoming
consultation on proposals to reform the tax
treatment of employer provided vans.
Operative date
- Not applicable.
Current law and proposed revisions
- The tax charge for the private use of an
employer provided van has been in place since
1993. A flat rate charge of £500, or
£350 for vans that are 4 or more years
old, is applied where an employee has the
exclusive use of a van. This includes any
private fuel provided. Where vans are shared
by two or more employees the charge is divided
between all participating employees. If more
than one shared van is available there is
generally a maximum charge of £500 per
employee but there is no restriction if an
employee has a mixture of shared and exclusive
vans. Employees can opt for a daily charge
of £5 instead of the flat rate charge.
- The Government will be consulting on proposals
to reform the tax treatment of employer provided
vans, to take into account environmental benefits,
fairness and modern working practices.
Further advice
- If you have any questions about this change,
please contact the Public enquiry Unit on
020 7438 6420 to 6425.
www.inlandrevenue.gov.uk
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