Accountancy firm Baldwyn Ward are reporting an influx in enquiries relating to the recent change in legislation where the taxable benefit for the private use of company vans increased from £500 (£350 if the van is more than 4 years old) to £3,000 - no matter what the age of the van. 

Accountant Lesley Ward from Baldwyn Ward says “I don’t think employers are yet fully aware how this could affect their bottom line, but those that are tell me they are no longer going to allow their employees to use their company vans for private journeys.”

Lesley goes on to say, “Employees and employers need to be fully aware - if they do not want to incur additional tax then they should ensure there is no private use of company vans. There is also the fact that a further tax charge is levied if free or subsidised fuel is provided for private use of a company van.”

This news will come as quite a blow as many small start ups do not have the privilege of choice and private usage of company vehicles still remains the most coveted employment perk, as documented by a recent survey in PR Week.

‘If you are in doubt as to what you should do, or how much this could cost you speak with your accountant or visit www.hmrc.gov.uk/vans.  They can both provide you with a wealth of information on the subject, both from an employer and an employee’s perspective.’ said Lesley.