Save Tax – Have a Company Van

If you have a company van i.e. something that is not designed to carry passengers (but it can still have a passenger seat in the front) then the benefit in kind on that is only £3,090, which would be £1,236 in tax if you’re a higher rate taxpayer, and free fuel provided by the employer is taxed at a flat £581, or £232 in tax for a 40% taxpayer.

Many double cab pick-ups are classed as vans such as the Mitsubishi L200. Generally, HMRC accepts that a double cab pick-up with a payload of 1000 Kg or over is a van for benefit purposes.

In addition, VAT may be reclaimable on the purchase price.

So if you are thinking of buying a company car it may be worth considering a company ‘van’.