Sarah Bradford looks ahead to a change in the tax treatment of electric company vans.
As for cars, a tax charge arises under the benefit-in-kind legislation where a company van is made available for an employee’s private use.
The tax charge for a company van has historically been much lower than for a company car, reflecting no doubt the difference in the perceived value of the benefit – given the choice, most employees would prefer to undertake personal journeys in a car rather than in a van.
However, changes to the company car tax rules that came into effect from 6 April 2020 have disturbed the status quo in relation to electric vehicles. For 2020/21, there is no taxable benefit if an employee has unrestricted use of a company car, whereas the benefit of unrestricted use of a company van is valued at £2,792 for tax purposes.
This will change;
