Date posted: 3rd Jul 2019
An update on our recent article “Tax Aspects of Using a Work’s Van”
As mentioned, care is required when a van has undergone any adjustment, for example, adding an extra row of seating. It is possible it could be classified as a car, in HMRC’s opinion, which will lead to significantly higher benefits in kind and thus, tax charges for the recipient.
The tribunal decision, in HMRC’s favour, determined that where a vehicle is equally suitable for the conveyance of both goods and passengers it has no primary suitability and so cannot be a ‘goods vehicle’ or van. This decision has recently been appealed by the appellant but the decision was upheld by the Upper Tier Tribunal.
Do contact our tax team if this article raises any issues for your business.