As of April, the taxation of company vans that are also used by employees for private journeys changed. Employees who have been charged with a benefit in kind of up to £500 will no longer have to pay that charge if they have the van mainly for business travel, and any private use other than journeys to and from work is insignificant.

The new rules will allow employees to use vans for private travel to and from work without paying tax. And, where there is no tax charge on the van there will be no employers’ NIC charge, representing potential savings to the company.

If employee van drivers meet the conditions for a nil charge, employers should inform the Inland Revenue, stating their employer’s reference number, the names of the van users and their NI numbers. This should lead to a discount.

Source

Electrical and Mechanical Contractor