Company Van for Private Use ?

[RedRobin]

Hi all

At present, I park my Vauxhall Combo Van up every night , never used for private use, other than thats allowed by HMRC

 

 

I'm now considering using it for full private use and paying the tax. , but on top of the Tax adjustments I have to contribute £32 pmth towards diesel.

 

Yes, it looks like a good deal, but the Van is part wrapped in the companies livery . Oh for a plain white van.

 

Any idea how much out of my net pay the whole lot will cost me ?

Is anyone else using their van for full use ?

Is the tax and fuel contributioon still a good deal ?

 

 

Cheers for any comments / advice

Rich

[Davyo]

Go, on toHMRC website there should be a calculator on there, what will happen with your tax code is that there will be a restriction in you PA to cover the van 3000 PA for the van & 550 for the fuel.Your employer will send HMRC a P11D in july following the tax yr ending.If your gona do it do it commencing 06/4/13, so you dont get a PUP (potencial underpayment)

PA will be 9400 for 13/14

minus you deduction of 3590

leave net pa of 5890

you tax code should be 589L

take your gross ann inc

minus 5890 will give you your taxable pay then x this by 20% will give you your tax due (providing your a 20% taxpayer)

 

If you paying your fuel dont take the comp fuel of 550 in the code,this will mean you code will only reduce to 644L

Same calc but use 6440 as your deduction from the pa of 9440.

Edited March 19, 2013 by Davyo

[RedRobin]

Go, on toHMRC website there should be a calculator on there, what will happen with your tax code is that there will be a restriction in you PA to cover the van 3000 PA for the van & 550 for the fuel.Your employer will send HMRC a P11D in july following the tax yr ending.If your gona do it do it commencing 06/4/13, so you dont get a PUP (potencial underpayment)

PA will be 9400 for 13/14

minus you deduction of 3590

leave net pa of 5890

you tax code should be 589L

take your gross ann inc

minus 5890 will give you your taxable pay then x this by 20% will give you your tax due (providing your a 20% taxpayer)

 

If you paying your fuel dont take the comp fuel of 550 in the code,this will mean you code will only reduce to 644L

Same calc but use 6440 as your deduction from the pa of 9440.

 

Dave

Do I have a choice about the compulsary £550 set cost for fuel if im contributing £32 pmth ?

 

cheers mate

[Davyo]

You don't need to have fuel in the code,you can just have the van ( JUST LIKE COMPANY CARS THEY HAVE THE CHOICE OF JUST CAR OR CAR+ FUEL EXEPT THEIR FUEL IS CALC USING THE CO2 = ENGINE CAPACITY + LIST PRICE. THATS WHY THEY DONT HAVE A SET FUEL ON CARS.). on side of caution however speak to the employer as the last thing you need is payroll sending in a P11D to HMRC at the yr end.The other option is that the fuel is 550 less your contribution of 384.Better still call HMRC and poss speak to a TECH.

 

The van on its own will cost you add tax of £600 for the year. £50 per mth (where can you get a new van for that price) thats the way to look at it

 

EXAMPLE A/ SAY £20000 PER ANN GROSS PAY

- 9440 PA

£10500 TAXABLE INC

AN TAX DUE £2112. WITH OUT VAN

 

EXAMPLE B/ SAY £20000 PER ANN GROSS PAY

- 6440 (9440-3000 FOR VAN)

£13560 TAXABLE INC

AN TAX DUE £2712

DIFF FOR HAVING VAN £600 PER YR = £50 PER MONTH

Edited March 19, 2013 by Davyo

[CZ550Kevlar]

I got my company to state I'm home based and therefore any mileage I do is business which means I pay zero tax.

[bikemad24]

im on call 24/7 so my boss lets me use my van to do as i please. i don't get paid for being on call, so don't pay tax on van. whether that's right or wrong i really don't care, i work 50/60 hours a week hmrc get most of my overtime anyway. sorry cant be much help, i find it frustrating that this country try's to squeeze every last penny out of people. my wife uses the car for going to uni and we could not afford another car for me to use anyway.

[RedRobin]

You don't need to have fuel in the code,you can just have the van ( JUST LIKE COMPANY CARS THEY HAVE THE CHOICE OF JUST CAR OR CAR+ FUEL EXEPT THEIR FUEL IS CALC USING THE CO2 = ENGINE CAPACITY + LIST PRICE. THATS WHY THEY DONT HAVE A SET FUEL ON CARS.). on side of caution however speak to the employer as the last thing you need is payroll sending in a P11D to HMRC at the yr end.The other option is that the fuel is 550 less your contribution of 384.Better still call HMRC and poss speak to a TECH.

 

Cheers for detailed advice, ill check with our Payroll tomorrow.

Complicated to say the least

[Davyo]

if you elect to take a van without private use it is for work only plus travelling to and from work,In this circumstance is not classed as private use & there would be no restriction in a tax code

[RedRobin]

im on call 24/7 so my boss lets me use my van to do as i please. i don't get paid for being on call, so don't pay tax on van. whether that's right or wrong i really don't care, i work 50/60 hours a week hmrc get most of my overtime anyway. sorry cant be much help, i find it frustrating that this country try's to squeeze every last penny out of people. my wife uses the car for going to uni and we could not afford another car for me to use anyway.

 

Yes mate, your right, this country trys to squeeze every penny out of people.

The company I work for has a very large number of techs out on the road in vans , so guess they're only looking after there own accounts.

 

Cheers

[RedRobin]

if you elect to take a van without private use it is for work only plus travelling to and from work,In this circumstance is not classed as private use & there would be no restriction in a tax code

 

They're fine with this, im classed as 'home based' with no traveling to and from an Office, so the basic HMRC guidlines on Company Vans kicks in... its just the additional use they're more concerned with. Sadly

[Diceman]

Travelling to & from your normal place of work is classed as private mileage.

If you pay for your private use fuel at less than the HMRC rates (currently 15p / mile for diesel engines 1400-2000cc) that is a benefit in kind and is taxable.

If you work from home and it is 'available for private use" (whether you use it or not, even once a year for a trip to the tip) the taxman considers that you will use it, and you will be taxed accordingly.