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Afternoon Gents.
I know a few of you have company vehicles and I'd like to pick your brains about the tax.
I currently have a Citreon Berlingo provided by my employer. I'm a Security Engineer so travel up and down the country different site and I'm on call 1 in 4 weeks. It's my 'own' van, I take home on weekends and get to use it for private use with no charge and it's not got a tracker.
I'm deducted £3170 from my personal allowance. ~£600 out of my pocket. Because I'm on call and HAVE to have a van to do my job shouldn't it be exempt?
Looking online it's a bit of a minefield!
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Nope because you have personal use of it then you have to pay BIK. The company would have to prove that its not available for personal use before the HMRC would let you off of the tax.
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I had a company van for a while & I had a letter saying that there's changes coming as of April which meant we'd lose our PMA allowance & I had no personal use anyway!
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If it's taxed as a commercial vehicle then you should be paying around £56 per month in the 20% tax bracket
That's what I was paying on my l200
Now paying around £35 in a PHEV outlander
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Vans used to be cheaper but not any more.
As of the 2016/2017 tax year the way BIK works will be different but the main difference to most of us is the way its taken from your pay. Instead of being taken out of your tax code, it will be taken as a deduction pre tax by your employer.
A lot of our guys at work have had the same argument as you mate. Its easier on vans to become exempt and the reason you wouldnt of paid it before is because you swapped vans, the company would of classed them as pool vehicles where as i bet your one now is assigned to you and therefore a taxable benefit to you.
Oh and to show you how much they take the piss, vans used to be on a flat rate ( i think) of about £20 a month. What your paying there is more than what im paying for my Megane lol
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