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jeff1

  • Posts: 5855
Tax increase for guy's with more than one van
« on: January 20, 2007, 06:26:17 pm »
Now I don't understand the Tax system, that's why I employ an accountant, but this just caught my eye on the web..........

Benefit in Kind Tax
New tax laws will come into force on 6th April 2007. The main change is the increase of the scale charge from £500 to £3,000 if there is any private mileage. This in effect is a 6 fold increase in the amount of tax paid by the driver. For a basic rate tax payer this will increase the annual tax burden from £110 to £660.The devil however is in the detail. There has also been a change in the way that Private Mileage has been defined. No private mileage = No tax, One private mile = Full tax. However if a driver has to take a van home as part of their job, i.e. on-call service engineer, then this is not considered private usage, but taking the family for a weekend away is. This stipulation does not apply to self employed owner drivers. What is still not clear is where the burden of proof lies around the private usage of the van. Does the company have to manage and report or is it up to the individuals? In each case it is not clear how you can prove that there is no private usage.

Here is the link to see if I read it right.
http://www.tradevansales.net/custom.aspx?id=8