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Tax bill deadline looms for delivery van drivers

28th September 2006
Page 12
Page 12, 28th September 2006 — Tax bill deadline looms for delivery van drivers
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DELIVERY VAN drivers face higher tax bills from next April because employers have failed to deal with new legislation, it has been claimed.

From 6 April next year tax costs attributable to company vans will increase from 2500 to 23,000, matching the charge made on a 220,000 company car. Many van drivers will not be liable, but will still have to pay the tax if companies do not meet the January deadline when personal codes are issued.

A driver earning 215,000 a year will have to pay another £600 in tax and his firm faces spiralling National Insurance charges. Brian Lovie, director of employ ment taxes at accountants l'KF, warns: "It is important for all companies that are going to be affected by the new rules to act now in order that the impact on employees and the company is carefully managed and unnecessary tax costs are avoided.'

Verifying how much personal use the driver makes of the van he

takes home is at the core of the legislation. PKFstresses that companies will need to change the terms and conditions under which they provide vehicles to show they are not for personal use.

Van drivers will need to keep log books of mileage as the tax will not arise if personal use Is deemed insignificant.

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