VAN drivers with company provided vans – expect to pay more in company van tax from April.
The company van tax benefit-in-kind charge is rising from £3000 in 2013/14 to £3090 in 2014/15, the Chancellor announced in his Budget today (19 March).
That means if you pay tax at 20% your yearly charge for full use of the van is £618 a year – or £51.50 a month.
If you also get free fuel for your company van, then the van fuel benefit has also increased. From 6 April, 2014, the van fuel benefit charge multiplier will increase from £564 to £581.
So if you pay tax at 20% your additional bill for free fuel will be £9.68 a month.
Company van tax only arises if you have private use of the van. Commuting to and from work is not considered private use of a company van.
The changes also affect double cabs – both for trades people who run around in them and those company car drivers who want to dodge the higher rates of company car tax.