dangerousbrian

been sent a form from work today asking if i would like to have personal use of my work van..it says there will be a government tax on it if i say yes but doesnt state how much..need to know if it will be worthwhile before i commit..anyone here have personal use of work vans? self employed peeps will be different no doubt...thanks

marky_g

not sure how much it works out at but we worked round it buy charging 13p a mile. for personal use

dangerousbrian

i have a company fuel card that will pay for the diesel but there is a tax on that aswell i have just found out..used to have free use of van and free juice for personal use before this poxy rule came in..barstewards

snoopaloopa

iTrader: (3)

Its about Ł512 a year iirc and a bit more if you go down the unlimited fuel useage as well, its been a while since i checked but its something like that.

cozzy940

say no and use it anyway

dangerousbrian

they have trackers fitted and said they will be checking them every so often..only been in the job a month so dont want to jeopardise my employment as i enjoy it and is quite relaxed, and has potential to be by far the best paid job ive had

dangerousbrian

anyone else shed some light on this? cant get a straight answer from work and cant find any info on the web..direct.gov is spouting off loads of crap

StephenC

im sure it takes something like 3k off your tax free earnings so you end up paying tax on that 3k where without use of van you wouldnt. Then youve got diesel on top which company will deduct from you as and when. Shite these days and tracker really screws things up, been there done that! Just stopped using mine and everytime they rung me to ask where I was I told them to look on tracker!!!

pee vee

If you are are the same as me then it will out your tax code to 138t

You can go on a website and use that to work out what it will cost you in real terms
Just compare it to what you'd take home if you were on the usual tax code.

Cragrat

iTrader: (4)

As I understand it if u use to drive from home to work you are liable to pay tax on that usage as its classed as personal for some reason

snoopaloopa

iTrader: (3)

To and from work is not classed as a perk anymore on company vans, assuming you drive to a different start point for work most of the time?, the tax on Ł3000 is approx Ł512

Iain Mac

The scale charge on a van is Ł3000, so if you are a 20% tax payer it costs Ł600 a year. If you are at 40% it is Ł1200.

If you take the van home and your only private use is for commuting you don't have to pay.

If you make more than "insignificant" private use, you have to pay, but if you pay for the use of the van everything you pay is deducted from the tax due.

The charge for private fuel on a van is Ł550 per annum so Ł110/Ł220.

http://www.direct.gov.uk/en/MoneyTax...odes/DG_078412

Iain Mac

Forgot to say that these "new" rules have been in play since 6 April 2007.

I'm guessing that, because the economy is in the toilet and the Government needs all the cash it can find, attention has been turned to all these "free" benefits that folk have been enjoying.

St3V3_C

AFAIK, this is correct - when you are talking about going into the office/depot or whatever. If you are going to a site, then it's business mileage.

It's all about choice - if you have any other way of doing those miles, then they are personal. i.e. you could drive your own car to the depot. If work want you to get off to site first thing tomorrow morning, then it's business - as they wanted you to do it.

It's probably come up in an audit your company has had, and they are shitting themselves lol.

Ryan_3

carry dead bodies to throw in the river?

St3V3_C

Depends if your boss asked you to I guess.



LOL

Iain Mac

That was under the old rules. From April 2007 commuting doesn't count because too many employers simply don't have the space for a fleet of vans to be parked up overnight.

dangerousbrian

all that tax nonsense puzzles me..i only ever look at what goes in my bank ha..i sort of work from home..if i get a job passed the previous day i go there for the stated appointment time, but if no jobs i can either wait at home or go to the suppliers and wait for a job, so im not sure if that includes personal or what..if them Ł510 and Ł220 figurews are right then Ł730 a year for a van sounds ok to me..virtually trouble free motoring and means i acn get rid of the runabout to save a few quid that way

Big-Dan

iTrader: (2)

Yeah, I was told that if your due to be on site for say 9 am and it's a 1 hour drive, the miles you clock up are at your own expense (i.e distance from your house to the site).

Big-Dan.

dangerousbrian

just thinking there, i have no choice but to take the van home..i dont have a depot and my head office is 4 hours away at best..

Iain Mac

That may be your employer's rules for your time and/or mileage, but the taxman doesn't count those miles as private mileage in a van.


As I said above, if you don't use the van privately you don't have to pay even if the van is kept at home. Just complete the no private use declaration and then don't use the van privately. Your tracker should provide sufficient proof - if the taxman launches an investigation of you and/or your employer, he can check for vehicle movements during the evening, at weekends, while you are off on holiday etc.

dangerousbrian

im not bothered about having to payfor it..as long as its not ridiculous amounts..trying to work out if its worth it

furqall

who you working for now? im sure my van takes Ł3500 or Ł3000 from my tax allowence

dangerousbrian

mobile solutions its called..spoke to a few people today and they said they take around Ł500 a year out ya wages..sounds worth it to me

St3V3_C

Actually, there is a 'Insignificant' clause that means you can use it without declaring it as a benefit.

See 14.5

http://www.hmrc.gov.uk/guidance/480.pdf

1.9 xr2 on 40's

my mate pays Ł70 a month and uses his mor ethan his car, handy
i use my van daily for work so can easilly combine what i need without the hassle of permission/costs/tax
if you have a car you will no longer need/want or specific reliable journeys (like picking kids up etc altho thats an insurance issue!) then its worth it

most mornings i drop my lil un at school then off to 1st job, i get comments on teh kids seat but i tell it its better in there than the shed going mouldy since i sold my car and it dont fit on a fireblade

Iain Mac

Yes, and 14.5 - 14.7 go on to give some "definition" to the undefined word "insignificant".

Someone has to be first to challenge exactly how much private use is insignificant but, for the money involved, it won't be me (or anyone I know!)

Fudgey

iTrader: (4)

i opted out of private use, as with my van there is not much point. i dont really want to take my littleun in it, and there is fuck all space in it as its full of work shit

i have very occasionally used it for private use, but looking at steve c's post, it should be acceptable. ie having to pop to b&q for emergency plumbing stuff a while ago while the wife was out in our car etc.

but thats just me, as i dont really need it for personal use. mine is also on a tracker, and we had a form recently that we had to sign stating if we wanted it for personal or not

Ginge !

cheeper than company car !!!!