A specialist accountancy firm has revealed that fleet van insurance holders are paying more tax than ever before in order to meet the demands of revenue and customs.
According to figures produced by the firm, HMRC managed to claim back £40 million in tax from fleet van insurance holders during 2008/09, compared to just £10 million in 2006/07.
The reasons for this are plain: whereas the taxable benefit in kind for vehicles of at least 4-years old used to be £350, and £500 for new vehicles, since 2007 the taxable benefit for all vans has stood at £3,000, plus an additional £500 of taxable benefit in circumstances where the employer provides fuel.
A partner at the accountancy firm behind the study comments on the impact these changes have had on fleet van insurance holders. "This tax increase has had a huge impact on small businesses, many of whom have been struggling with rising costs during the recession. Vans are an essential tool for many small traders and this tax hike has come at a time when other costs, such as fuel, have also risen sharply."
He added, "HMRC is not giving drivers much leeway about what constitutes permissible private use of a van. It is very difficult for employees who are allowed to take vans home to avoid this tax charge. Using the van to pick up the kids at the weekend will almost certainly result in the van being taxed as a benefit."