Usefull information for company vehicles -

New changes to tax from April 2007,

Under the new tax changes it is expected a large number of company vans will no longer incur a tax charge for both the employer and employee.

This will only be applicable if the following are satisfied:-

• the only journeys made in the van are work journeys, eg. delivering goods or making calls to customers
• all the journeys are work journeys and travelling between home and work only

The employer must be able to show the Revenue that no tax is payable. It is recommended that this is demonstrated by keeping the following:

• Milage records
• Signed agreement about the van use
• Have use of the van put into the contract of employment.

Auto Tec recommend that the use of a fleet management tracking system would avoid any issues about miliage, location and unauthorised usage between the employer and employee. The infomation recorded could be used to prove to Revenue how the vehicle has been used over the period in question.

For further details relating to the new tax laws please go to www.hmrc.gov.uk/ria/vans.pdf