The taxable benefit for the unrestricted use of company vans will be £3,000 (with no reduction for older vans) plus a further £500 of taxable benefit if fuel is provided by the employer for private travel.
The maximum tax payable on the use of a company van is £1,400 p.a., and the employer's Class1A NIC payable is £448 p.a.
Legislation in the 2008 Finance Bill will ensure that reimbursement of private fuel costs for vans will not be treated as earnings for tax purposes. The same rules will have effect for the provision of van fuel for private use as those that currently have effect for company car fuel.
Navigate through your guide to the Budget 2008
Introduction and Budget highlights Residence and domicile Business taxation National insurance contributions Business incentives Personal savings Company cars Capital taxes Company vans Excise duties Mileage allowances Stamp duties Value added tax Other measures announced Personal taxation 2008 tax calendar
Content by: Business Made Simple
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