Company vans

Subject to confirming compatibility with the State aid rules, legislation will be introduced to provide a 100% first-year allowance for business expenditure on new (not second hand) electric vans from 1 April 2010 (corporation tax) or 6 April 2010 (income tax). From 6 April 2010 there will be a new tax band of 0% on all electric company car tax available for private use.

The figure used as the basis for calculating the tax charge on the benefit of private fuel used by an employee in a company van is to be increased from £500 to £550 from April 2010.

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 2010: vans

Annual Class 1A National Insurance Contributions for vans, including so-called ‘Double-Cab’ pick-up trucks, in 2010/11 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. From 2011/112, Class 1 NIC contributions increase by 1% to 13.8%.

Van VED rates

Visit www.direct.gov.uk/ for more information.

Share on Facebook