Company car or Van tax question

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  • Company car or Van tax question
  • jodafett
    Member

    The taxable amount is roughly £3000 which will cost you about £700 a year. This is split between the van tax and a fuel tax. In my company brief there is no mention of different tax for engine sizes.

    Premier Icon nano
    Subscriber

    Tax should be based on OTR cost of car / van and percentage of tax levied for the emissions. Assuming ‘sport’ models cost more than standard then expect to pay more tax based on the higher value of the vehicle assuming they have the same engine / emissions. You can get the emissions info from HMRC (based on the percentage emissions). Work out the total OTR cost of the car inc extras (met paint etc.) and you will pay whatever the rate charged for emissions against the cost of the car at your highest rate of tax if its a company car. This stuff I guess you know already.

    There’s some potential saving on a van from the VAT verses a car but if its a company car you probably won’t get this.

    chojin
    Member

    I have a VW T5 as a company “car” and it costs £50 in tax per month.
    This is a capped figure, regardless of the emissions.

    Premier Icon JohnClimber
    Subscriber

    Thanks all

    Doing the maths off Jedafett’s £3000 and Chojin’s £50 a month.

    £50 a month is 20% of £3000

    Most car’s are more that this £50 a month in company car tax.

    So am I right in saying the van will be cheaper?

    Premier Icon JohnClimber
    Subscriber

    I currently have a fully expensed company car which gives out 115 CO2

    In a few months I might be able to upgrade to a bigger car, I don’t want a people carrier so I’m thinking of something that will eat a couple of bikes with the wheels on such at the Volvo V70 which gives out 129 CO2.

    My question is. If I’m allowed a VW Transporter or a Merc Vito what is the tax amount on a van nowadays over the V70? Will I be better or worse off?

    And are all vans the same tax costs whatever the engine size or if it’s a sport model?

    Ta

    MarkLG
    Member

    Vans are taxed differently from cars – as above it’s £3000 pa taxable value, plus another £600 if you get fuel for personal use paid for.
    Before you get too carried away get a drive in one of the vans you’ve been looking at and decide if you could put up with it as your only means of transport. I wouldn’t want the extra noise, poor ride and sluggish performance every day of the week just to save a bit of hassle when I go for a ride at the weekend.
    I’ve got a fairly new transit which I’m glad to get out of on a Friday and it doesn’t move all weekend. I’ve even opted out of having it for personal use to save the tax bill.
    Some of the better Vitos and Transporters are well spec’d, but at the end of the day they’re still vans…

    M1llh0use
    Member

    Been in a company van for ~10years. Feels weird driving a car now.

    Van rated at £3k taxable benefit at your tax rate so roughly £600 in tax on 20% rate and £120 for fuel benefit

    Or £1200 & £240 @ 40%

    Premier Icon nickdavies
    Subscriber

    As said above you can use a van then you’ll be quids in. It’s a base of £3550 taxable value (£3000 for van and £550 for fuel) just times it by your tax rate either 0.20 or 0.40. Compared to your average big company car it’s cheaper if you can live with the van drawbacks.

    The only thing you have to watch is that it passes the commercial vehicle tax regulations, with regards to windows, no. of seats etc. You basically have to have no rear windows and you’re only allowed rear seats if its over a certain weight. Roughly you can have a 5 seat T5 but a 5 seat astra van’s a no go. It’s a bit of a grey area – you should talk to your accountant, but to be on the safe side it has to be panel van with no rear seats. I’ve just been through the same thing.

    For example a top spec Landrover discovery would cost you £5100 a year @ 20% tax as a company car, but the commercial version with black plastic windows and no back seats would rush you £710 a year, less than the cheapest diesel estate. At the same rate the eco V70 2.0 diesel would cost you £1700 a year in tax. Vehicle sits on the books better for the company as well if bought outright.

    Premier Icon JohnClimber
    Subscriber

    Thanks for your help and advise.

    I’d never need more than 3 seats (front bench is perfect)
    No windows in the back is perfect
    The company leases the vehicles so no worries there
    The sport versions are fast enough
    I can take a bike with me most days for a late lunch hour ride when I get the chance, so work stuff on one side bike on the other.

    I’d just got to talk my boss into it and then when I take on someone down south they will have to have my current car.

    wrightyson
    Member

    In builder land vans are still tax free ish
    However a lot of the subbies who work for us are having trackers fitted to the vans for tax reasons. That way they can prove the whereabouts of the van at the weekend/evenings etc. The lads driving them are not happy about it though…

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