Client intends to purchase a commercial vehicle through his company, it will be used occasionally both private and business use.
Now, heres the thing.....
It's not a crew cab pickup, or a Transit, it is a HGV tractor unit - yep capable of pulling 38 tonnes.
He will be changing the registration to that of a private HGV and then using it for driving around etc (I suppose a bit like Chris Eubank used to !!)
Is the taxable benefit still 3.5k !
I see no reason why not - but never been asked that question before....... !!
Replies (4)
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Definition of a van
HMRC has the definition of a van within its 480 (2012) expenses and benefits guide.
http://www.hmrc.gov.uk/guidance/480.pdf
11.4 Van means:
a vehicle of a construction primarily suited for the conveyance of goods or burden of any description (this does not include people)with a design weight (the weight which the vehicle is designed or adapted not to exceed when in normal use and traveling on a road laden) not exceeding 3,500 kilograms
The key issue here is the weight of it.
I would be be interested to know how he intends to use it personally. Can't imagine there any many car parking spaces which cater for a HGV tractor unit.
It's not a van
A van is defined as a goods vehicle with a design weight (maximum laden weight) not exceeding 3,500 Kg (S.115 ITEPA 2003). A goods vehicle with a design weight exceeding 3,500 Kg is a heavy goods vehicle (S.238(4) ITEPA 2003).
I suspect your tractor unit doesn't satisfy the definition of van, so the benefit will be a standard asset benefit (20% of market value when first provided plus the "additional expense" in providing the benefit).
There is a specific exemption in S.238 for heavy goods vehicles where the main use isn't private use, from what you say though, it sounds like it won't apply.
Disagree ...
I think nil, as long as a good amount of business use! see here:
http://www.hmrc.gov.uk/paye/exb/a-z/h/hgvs.htm
and here
http://www.hmrc.gov.uk/manuals/eimanual/EIM22990.htm
But if not then taxed as any other asset, eg computer, helicopter, yacht etc.:
http://www.hmrc.gov.uk/manuals/eimanual/EIM22993.htm
See here
http://www.hmrc.gov.uk/manuals/eimanual/eim21632.htm
so, 20% of market value at time made available!
This is from the VAT guidance which may be useful too.
http://www.hmrc.gov.uk/vat/sectors/motors/what-is-car.htm#3
EDIT: [***], beaten to it as being more helpfiul with links!