Drivers, who use company vehicles for personal reasons, could face a £3,500 van benefit charge, which represents a 600% increase over the previous year’s liabilities in addition to the NI contributions associated with company vehicle use. Employers can also land themselves in hot water with NI contributions and a penalty for any incorrect declarations made.
The new law does state that reasonable use may be accepted, such as a quick visit to the newsagents on the way to work, but shopping trips in either work time or out of hours is a taxable activity.
“I’ve heard it said many times that revenue collectors are preparing to report company vehicles that are parked up in supermarket car parks, landing company van drivers with huge tax penalties,” said Martin Davies, Director at vehicle tracking company remoteassetmanagement.co.uk.
“While the thought of an undercover revenue inspector jumping out on unsuspecting van drivers, as they enter a car park, might sound a bit like a sketch from Monty Python, there is a very real concern for the drastic change in the way the HMRC will penalise van users. There’
Just as traffic wardens have been reported to rake in extra pounds by fining vehicles that are just seconds over ticket times, so it is expected that the HRMC will be extremely tough on companies that are unable to prove where, when and how their vehicles are being used out of hours. However, the only real targets are fleet managers that don’t have a tracking system!
“All of our customers can relax,” continued Davies. “We’
“For those without a tracking system, be aware that – based on our experience – you could be losing hundreds of pounds per vehicle each month through wasted fuel, communications costs and unproductive scheduling. The taxation issue is just another common sense business reason to fit a tracking system, before the Revenue comes knocking on your door.”
