Date posted: 14th Aug 2020
The Court of Appeal has recently ruled that certain modified vans are regarded as cars for tax purposes, rather than vans.
This follows on from the original tribunal in the “Coca Cola” tax case, that ruled that vans, that had subsequently been modified to fit additional seating to the factory produced model, should be regarded as cars for tax purposes. This means increased benefit in kind values should have been declared on forms P11D.
Coca Cola were trying to overturn the tribunal’s ruling, at the Court of Appeal but have failed. Therefore the employee’s and employer will face increased tax and national insurance charges.
We would recommend that any employer with modified vans in their fleet, undertakes a review of the situation and looks to amend their P11D, where necessary.
Should you have any queries on the above or need further support, please contact our tax team here, who will be happy to assist.
Read more below:
Read more September 2020 tax news below:
- Accountants Warn of Further Changes to Digital Tax Reporting
- Recession tax planning
- Vans are cars?
- Offshore Income Reporting
- HMRC systems are behind: Have you received any unexpected correspondence or penalty notices?
- R&D claims – evidence required
- Numerous Fraudlent CJRS Claims Identified
- Certain Property Business Owners are Liable to Class 2 NICs