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Businesses Unprepared For Van Tax Hike
Research has revealed almost a quarter of companies operating van fleets are unaware the benefit-in-kind tax charge on company vans will increase by 600%, unless they can prove their vans are only used for business and not personal use.
Twenty-three per cent of companies questioned in a survey, commissioned by vehicle tracking specialist Navman Wireless UK, admitted to being ignorant of the Government tax hike that comes into force this April. The tax charge on company vans will soar from £500 to a massive £3,500 if proof cannot be provided.
The survey also revealed that, of those that are aware of the increase, around a third (32 per cent) are failing to take steps to provide evidence of when, where and how a vehicle is used.
The scale charge for unrestricted private use will increase to £3,000 and if an employer provides fuel for unrestricted private use, an additional fuel charge of £500 will apply.
Furthermore, companies will have to pay more in employer's NI contribution if they cannot prove how many private miles their fleet does - 30 per cent of those questioned however said they were unaware of this fact, and 27 per cent of companies said they were unable to prove in any case how many private miles their fleet does.
"The onus is on employers to provide proof of use but these statistics suggest that many companies are ill prepared for the forthcoming tax rise," explains Tony Neill, Vice President Europe, Middle East and Africa at Navman Wireless Business Solutions
"Vehicle tracking technology offers an opportunity for them to present clear evidence of vehicle use. The Navman system automatically keeps accessible records for 18 months, before archiving, providing employers with documented proof that the van is being used only for business use."
Navman Wireless Business Solutions provides vehicle tracking, two-way text messaging, fleet monitoring and reporting software and satellite navigation systems.