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stumped !

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....... !!

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By dreamcatcher
20th Dec 2012 10:32

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. 

 

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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.

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By Old Greying Accountant
20th Dec 2012 12:44

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: bugger, beaten to it as being more helpfiul with links!

 

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20th Dec 2012 17:17

it would appear then that

Private use will be the killer as he will be using it privately mostly

Thankyou all for your helpful replies and have a great Christmas!

 

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