Drivers of company vans, including 4×4 ‘Double-Cab’ pick-up trucks, who use their vehicles for private mileage pay benefit-in-kind tax based on a taxable value of £3,000, or £3,500 if the employer also provides ‘free’ fuel for private mileage.This translates to annual tax payable on any company van used privately of £600 for a 20% tax payer, or, £1,200 for a 40% tax payer.

Where fuel is also provided for private use, the tax payable is £700 (20% tax payer), or £1,400 (40% tax payer).

Employees who have to take their vans home to enable them to drive customers to work in the morning, and who are not allowed other private use, do not pay a benefit tax charge.

Class 1A NICs in 2008/9: vans

Annual Class 1A National Insurance Contributions for vans, including so-called ‘Double-Cab’ pick-up trucks, in 2008/9 are based on the same taxable values used for BIK tax calculations. These are £3,000 (vans provided excluding free fuel for private use) and £3,500 (vans provided including free fuel for private use). The amounts payable are calculated by multiplying the taxable values by 12.8%. The example below shows the levels of contribution.

Example: annual Class 1A NICs

Vehicle Excise Duty in 2008/9: vans

Euro IV emissions standards for vans became mandatory for all vehicles registered after December 31, 2006.

The reduced rate of VED for Euro IV vans was removed for vehicles produced after December 31, 2006, but remains in place for Euro IV vans registered between March 1, 2003, and December 31, 2006.

VED in 2008/9

• Vehicle excise duty (VED) in 2008/9
• 2009 vehicle excise duty reform
• Company car tax in 2008/9
• Company car tax: calculating your benefit-in-kind liability in 2008/9
• Business mileage in a private car: reimbursement rates in 2008/9
• Employer-provided ‘free’ fuel for private mileage: benefit or liability?
• Capital allowances to be based on emissions of CO2 from April 2009
• Calculation of employers’ Class 1A National Insurance Contributions
• Company vans
• Biofuels