Chris Thorpe reviews the position of vans and benefit-in-kind charges in light of the recent Court of Appeal case which held that VW Kombis and Vauxhall Vivaros are actually cars.
You’d think you’d know a van when you see one – it’s a van, after all!
Vans vs cars: The tax angle
Being a van is great as far as the income tax benefit-in-kind rules are concerned; the level of the taxable benefit on private use availability is a fixed amount (i.e. £3,490 in 2020/21) with fuel likewise at a flat £666.
Tax on cars and fuel is far more punitive; a list price applied to a percentage based on its carbon dioxide (CO2) emissions; the fuel rate uses the same percentage applied to a fixed rate (£24,500 in 2020/21). So there’s an obvious advantage to a vehicle being a van rather than a car.