Thrush

iTrader: (1)

Posted a topic a little while ago after hearing something about new government rules on company van taxation - finally found out some "proper" info today...

Up untill now, the government has allowed company vans that are taken home from work and allowed by the company to be used for private use, to be taxed upto around £500 a year (paid by either the company, or by the employee, via the company)

New rules that come into play in April 2007 mean that the cost of using your works provided van for private use (which is NOT travel between work and home - that is regarded as company use and is waivered) means that taxation on these vehicles will rise the £3500!!!

My understanding on the matter is that the total fee of £3500 is for higher earners (in the 40% tax bracket) as it seems that for us "lower eaners" (22% bracket) we will have to fork out £770 a year in tax, payable to the government (via the company) This is compulsory for all employees using company vans for private use. Of course if you don't use it for private use, and can prove it with correct milage reciepts, records etc, then you don't have to pay anything (except out company charges us employee's £25a month "damage money" even if we don't use it for private use. They claim we get this back again at the end of the year, tho most of use never see it if we have had to have had anything done to the van - even a new mirror will see this wiped out )

So where previously I was paying £520 in tax, and £260 to my company to use my van for private use (equals £65 a month), I will now need to pay £770 in tax, and £260 to the company, which equals £85 a month - basically a score a month more to continue using the van for whatever I want to

I know it's not the end of the world, but it's just ANOTHER expediture I have to make, from a very tight budget I have per month, what with buying my first house etc....

FFS tho, the goverment are REALLY pissing me off now. They have obviously got wise to the fact that a lot of people are using company vans for private use, so not paying the same levels of tax to them (the gov) that most people do in fuel, lisencing(sp) etc, so they up the company van tax to line their pockets some more!

Honestly, I really cannot think of any other reason that "to make more money" for why they are doing this. It's not a "traffic reducing" scheme is it? We would either use private cars or company vans, and we choose to use company vans as they are cheaper, and for people like me that cannot afford to run a car AND a house, then the van is my only option. So they must be doing it purely for making more money - CUNTS......

rst_cabby

Ditto ............... Goverment are going to get our money one way or another ...........

BigMouthBillyBass

i had a van up until march last year

Company vehichles just change your tax free allowance, a van (or "commercial"...L200/Hi-Lux tax dodge ) meant i got taxed on an extra £500 a year. Worked out betweek £10-£15 a month more tax for me.


Got a company car now and it costs me about £65-70 a month extra tax

Mr RS500

iTrader: (6)

I was talking to the builder about this near me who has 22 vans

He lets all his lads take them home ( suits him as then there not parked all over the yard and at risk from being nicked ) but now he says he will have to stop this simply because if he gets caught letting them he will be paying massive tax bills

What is this country trying to do to us FFS

We joke about it but soon we will be paying for the air we breath

focusv8

As long as they only use them for travel to and from work or first or last site then there is no tax liability for anyone.
Travel to and from work is NOT classed as private use.

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xr2i-carl

i have work vsan which i onyl use for work purposes but do drive home with it etc, will i be ok?



thanks

carl

focusv8

YES
And the occassional trip to the tip is not counted either as long as your employer has no objections.

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gurnE

That's why they've changed it. All those people running around in crew cab, leathered up L200's etc

DUDE_SWEET_FRST

so how are they going to know if you use it for other things

focusv8

Unless the vans have Trackers fitted, like ours, the employer won't know.
The tax man won't know unless you or the employer tell them.

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rssteve

this has been on there website for months now also its 3K aint it

Thrush

iTrader: (1)

Yes they will. Companys with company vans that are used by employee's will be subject to mileage documentation - the company has to provide mileage reports monthly, and fuel bill reciepts. A report is then passed to the tax man, so any blatent discrepencies will be apparent.

And don't think they won't enforce it either - the government aren't stupid, and they know how to make money

daveselwood

if you read the governments site it says you pay for commuting i.e just travelling to work from home in your van

rssteve

can you explain abit more, i think your probably looking at the wrong bit.

Iain Mac

Travel from home to work in a company van is definitely exempt, but not in a company car.

dojj

iTrader: (3)

i've been through this recently, my tax code came back with £1113 when it hsould have been £4850 so, armed with all the info i had from the company, i phoned them up and got them to sort it

if you use the van to go to and from work only you won't pay the tax, none of it at all
if you use the van for the occasional trip, say once a month, to the rubish tip, you won't pay any tax at all
if you use the van as a car, you will pay the full whack

the only way to show that you don't use it is to make sure that fuel payments and mileage records are kept spankingly up-to-date (my job) so read this http://www.hmrc.gov.uk/vans/van-facts.htm and figure out what you need to figure out

there are ways around it, but not many, and i'm not telling either

focusv8

You can avoid paying any tax at all and have private use of the van IF you pay a realistic charge per mile set by your employer.
I have opted for that and I am going to have to pay 15pence per mile for private use. The employer / vehicle owner gets that, NOT HM Revenue.

Some companies are charging as little as 8 pence per mile which only covers the fuel.

At 15 pence I would have to cover around 5000 miles on private use (£770 / 15p) before I would have been better off opting for the fixed tax penalty of £3000 plus £500 for fuel totalling £3500 off tax code.

If paying 22% tax that would mean actually having to pay £770

On the yearly declaration that employers make for company vans/cars, I am now NOT a company vehicle keeper.

We have to keep accurate mileage records, showing every stop in the day to be able to charge our customers, when appropriate, we also have Trackers fitted which are used occasionally to verify mileage records. It would be very difficult to fiddle our mileage returns.

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dojj

iTrader: (3)

same here, all our vans are tracked, all our routes are preplaned so you have a realistic view of what sort of mileage the vans should be covering each day, you have electronic means to input the mileage at teh start and end of the day and we also have to put th emileage down when we fuel up so everything ties in
and because they are all tracked you can't even say you wern't somewhere when you were, even if you were to cover the reciver the feul and mileage gives you away

the only thing that we have to pay for is the feul if we use the van for soemthing but we always have to notify the fleet manager (not me) if we want to use the van, he then gives us authority to do so (or not as the case may be) with the onus being on the driver feuling teh van with the fuel card and then returning the vehciel topped up with mileage and fuel recipts

there have been several people who havn't asked to use teh van, and these ones not only lose the use of teh van and have to make their own way to and from work, they also get ticked in the "do you let this employee use the van without limit?"

Franco

iTrader: (2)

Ahh lucky i stumbled on this, i have a van that i use to get to & from work (even though i'm an office based manager) it was a deal used to bring me to my current company long ago & has always stuck.

Now i purely use this is go to and from work (as i have the escort when its running & the birds car for weekend use).

Now it seems like our accountant doesnt fancy doing anymore paperwork to help the staff steer clear of huge tax bills. Is it possible for us to immediately start recording mileage and present to hmce or is it purely something that has to be handled by the company.

Ta
Jason

dojj

iTrader: (3)

the company have to write to the tax office telling them that you don't use the van for personal use
otherwise you get bum fcuked for the tax
i don't pay as i'm not allocated a vehicle and, as such,, i use the "pool" van

Franco

iTrader: (2)

but surely the company gets raped then??

But seriously is it that simple? a letter? as i think HMCE wanna rape me, and if they do i'll be asking for a company car not van!!

focusv8

The tax penalty for use of a vehicle is applied to the user not the owner, unless the owner is the user of course.
Revenue form P.46 to do the declaration

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charlie luciano

iTrader: (3)

The reason Guy Fawlkes tried to blow up the houses of parliment in 1605 was because they were cunts then and their cunts now, earning mega bucks from doing fuck all, taxing us to death so their pockets are lined and their belly's are full.

Think of the oap's in this country huddled around a two bar electric heater during winter because their pensions are shite and they can't afford their energy bills. and how many children are living in poverty in this country?, but Mr Blair and co aint worried they'll just de-cork another bottle of red and enjoy finest three course meals and enjoy being driven around in chuffer driven cars that burn vast amounts of fuel.

Polotricks is bollox and fuck the lot of em! their all just as bad as each other, don't matter which of the fuckers are holding the reigns

What this country needs is some good old fashioned uprising and anarchy, Brixton, Tottenham and the poll tax riots, now that's what I call fun


Luciano

Franco

iTrader: (2)

Nice speech Charlie, but it dont stop us getting taxed to fuck by erm fella!

So lets learn how to screw erm!

focusv8

The reason for the changes are to reduce pollution from use of vans privately and to reduce costs to smaller companies, (in fact all companies will benefit), of having to notify use of company vehicles.
The claim is that 85% of company van users will NO LONGER pay tax on that use.
It's quite likely that the Revenue will receive less money from vans being taxed than they currently receive.
The charges I will be paying will go to my employer instead of the tax man, that reminds me I must ask for a rise now he will be better off.

P46 here, mine was filled in, in section 5, withdrawn on 5/4/07

http://www.hmrc.gov.uk/forms/p46car.pdf
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