Member Since: 16th Sep 2001
30th Apr 2019
Before 2008 HMRC were happy to use the same rules for VAT and Company car tax, so a van with extra seats and 1 tonne payload could escape with van tax rather than company car tax. Then around 2008 there was a tightening up of guidance and we saw the wording change on the website. There was no change in legislation, but on the examples we submitted it became clear that HMRC would now insist that any van, other than a doublecab pickup, would be subject to company car tax if it had more than one row of seats. The manufacturers did not help because all their brochures and websites for kombi style vans showed comfortable vehicles with families, bicycles, canoes, picnics etc etc being used in a non-business setting. So HMRC have a strong argument that such vans are not provided primarily to carry goods. And there has been little appetite to challenge their interpretation on any shape/style of van. So on Comcar and Vantax websites we have based the tax on how HMRC view these.
The company car tax treatment is particularly stark in this area for two reasons. Firstly the tax is usually higher on passenger vehicles, and secondly company car tax is payable as soon as a car is available for use, whereas a van driver pays no tax if private use is minimal.
Confusion also comes from the dealers who are expert on the VAT rules, but may not be aware of income tax implications. The rules are different, but at least there are clear rules on the VAT side. On Company car tax, it is still open to interpretation and the law is vague. However HMRC will insist on any company car tax it can.
22nd Nov 2017
Section 3.13 of the Speech says there will be no benefit in kind charge on electricity that employers provide to charge employees'electric vehicles. That suggests that previously employees could take fuel from their employer without paying EE NI, and be taxed as a benefit rather than net salary. Is that right ?
21st Aug 2015
AMAPs and electric cars
You can claim the standard 45p/25p on electric cars. The average running cost of an electric vehicle can be just as high as a liquid fuelled vehicle, and will be much higher if annual mileage is low due to the high initial cost. The mileage allowance is based on total costs rather than just fuel costs. HMRC currently don't consider electricity to be a fuel because it isn't "burnt".
19th Nov 2012
But remember that Google's UK turnover is all invoiced to Ireland. So VAT and turnover tax would not apply. It is legal under EC law, but bonkers if you were trying to run the country as a business and raise a fair amount of tax from one of the most profitable businesses operating here.
10th Oct 2011
I have been using E-conomic for a while. It is good though the navigation could be improved. The most frustrating thing is that if you email a quote, and the customer replies, their response goes into a black hole in E-conomics email server.
E-conomic have not prioritised a fix, so any pressure other users can bring to bear would be most welcome.
30th Sep 2005
LPG and hybrids
If you look at factory-built hybrids and dual fuel vehicles it is clear that the company car tax percentage will be the same or less in 2006/7 bar one exception. Drivers of the Honda Insight will be walloped with a 20% increase. Although there aren't many out there, it is ironic that the early adopters of one of the lowest emission cars ever will be the only drivers adversely affected.
Details of other cars can be seen at www.comcar.co.uk/dir1in.cfm