2007 Tax on vans

[icecold]

So Rt Hon Gordon Brown MP, Chancellor to the Treasury has decided in his wisdom that us poor sods that spend every day fighting the ever increasing traffic so that we can get to do our job are going to have to face an increase of 600% in the tax we have to pay on the vehicle we have no choice of driving, Thats right as of April next year the tax on vans is rising to £3000 per year from £500.
What are your thoughts on this?

[1torr]

As I understand it,if you dont use it for personal/private use,they can't tax you on it.

[Latte]

From What i hear that is correct, You will have to advise the tax office that youre vehicle WILL NOT be used out of hours for private use. How they will check that is unknown. I am told there is a section on this in the latest Service Engineer magazine but i havnt seen a copy yet

Regards

fatboy

[aawood1]

Hi Icecold/rdacwra,
looked at the magazine when it came in the post last week and from the section on this,
"PKF points out that to avoid the increasses businesses will need to change the terms and conditions on which they povide vans to reflect that they are not for personal use. Drivers will need to keep log books of mileage as the tax will not arise if personal use is "insignificant" ". It also said that if private fuel is provided the workers could face a Tax hike of 700 per cent.
Arthur.

[taz24]

Unfortunatly they will class driving to your first job and home from your last job as personal. So some tax will be due.

Cheers taz

[aawood1]

tas24, One other point in the section was from a spokesman from the HM Revenue & Customs confirmed from the 6th. April 2007 the nil charge will still apply if private travel is limited to home to work commuting.
Arthur.

[taz24]

tas24, One other point in the section was from a spokesman from the HM Revenue & Customs confirmed from the 6th. April 2007 the nil charge will still apply if private travel is limited to home to work commuting.
Arthur.

Right I stand corrected


cheers taz.

[aawood1]

Hi tas24, before you are corrected should we see what the Customs men do on that date ?.
Arthur.

[taz24]

Hi tas24, before you are corrected should we see what the Customs men do on that date ?.
Arthur.

If there is a way of getting an extra £ from you they will find it.

Cheers taz.


On a serious point I know that they used to charge you for traveling to work because it made it fair when compaird to office / factory workers who have to pay there own costs to get to and from work.
I'm sure we''ll see soon enough.

[icecold]

It appears that the tax can beavoided if your employer informs the tax office that the vehicle is not used for personal use, but this has to be done before the end of this month as the next years tax allowances are worked out in January. With the Christmas holiday looming this means that action has to be taken very quickly.

[old gas bottle]

wonder if the asshole would like to come and eat my christmas dinner asswell ! he,s creamed a big lump of my pension off,takes kkkkkk,s of pounds off me each year, without even going into all the taxes we know about,mumble,mumble.merry xmas gordi.

[bernard]

http://www.hmrc.gov.uk/guidance/480-chapter-13.pdf


http://www.hmrc.gov.uk/guidance/480-chapter-11.pdf

May be something in here,I don,t have time to read now.

Regards Bernard

[yorkytom]

well mr tax man thinks im on call every night and work from home!!

[LRAC]

OK guys i,m going out on a limb here, a lot of engineers have had vehicles provided for years and maybe your only means of transport, in which case you will have private mileage.

Here's the killer statement you pay 25% on that £ 3000 which equates to £ 750 per year real money, now of course you can leave your van at work if you don't want to pay that tax.

Think about it you will have to finance a vehicle privately and all the associated costs involved to run it and believe me it will be more that £ 750 quid.

I think at that price its as cheap as chips and i,m not handing it back.

Lrac

[old gas bottle]

i see your point but dissagree from the point of ,why should every little thing be taxable,the working mans creeking at the seems as it is, young engineers that have a family have it hard enough,why should you have to pay even more tax to drive round in a van full of tools when if you could there would be a nice sporty job for going to and fro parked on the front,we pay far too much in this country allready, start taxing those idle sods that wont work that still drive round in new cars better than most working blokes,or hammer the 30 per cent of the drvers that pay no tax or insurance.nooooooooooooooo,go for the easy target again.

[icecold]

Its a rip of because the the tax is equivalent to that paid on a decent estate car. Having an estate was once an option but now with the amount of different refrigerants, recovery bottles and machines that have to be carried apart from the security issues with being able to see inside an estate makes it no longer viable. It is just another revenue raising excersize aimed at an easy target. (along with gatsco's but that another story) I whole heartedly agree with Old Gas Bottle. Start taxing those who don'tor won't pay up and leave those of us trying to make an honest living to get on with it. Seems we talk a lot of common sense here in Derbyshire.

[LRAC]

Its a rip of because the the tax is equivalent to that paid on a decent estate car.

Whoever gave you the cost comparison for the above does not do figure work.

Take my situation, i drive a volvo estate for the tools and to fit the kids in. As a married man my tax code was 480L which = £ 4,800 being earnt before tax was deducted. Now with the above car my tax code is K480 which = £ - 4,800 so ive lost £ 9,600 quid @ 25% which really means £ 2,400 quid in real money (wage packet)

As i said before, hand your van back at the end of the day and finance your own transport to the office to pick your van up.

There you go no tax deducted.

Lrac

[bernard]

Hi

Phoned the tax office today for clarification,prepaired myself for a long wait being passed from one computer to the next Ring Ring straight through to a very helpful chap.

Tax will be increased from £500-£3000,your company needs to write to the tax office before april 06,declairing you do not use your vehicle privately.Driving to work and occasional trips to town is classed as negligable.

Phone 08453021483 tax office

Regards Bernard

[LRAC]

Your company needs to write to the tax office before april 06,declairing you do not use your vehicle privately.

Not a bad idea but please tell me which company director is going to do this for us and risk tax evasion charges if the vehicle is found to be used for private trips.

Tooooooooooooo RISKY

Lrac

The only way out of it is to ask your employer to fit a tracking device and prove to the tax man that no private mileage is being used, but then again you wouldn't be able to fool the wages department over unworked overtime claims?

[bernard]

At last my tracker may save me money

Regards bernard

[djbe]

wonder if the asshole would like to come and eat my christmas dinner asswell ! he,s creamed a big lump of my pension off,takes kkkkkk,s of pounds off me each year, without even going into all the taxes we know about,mumble,mumble.merry xmas gordi.

Spoken like a true gentleman OGB.

Of course the reason the TW*T has done this is because loads of people that have swopped their company cars (which are a perk for most of them) to Crew cabs. Classed as a commercial vehicle so they pay hardly any tax (or did). Looks good on the drive to impress the neighbours. Makes em look hard coz they've got ANIMAL written down the side. Can't get bugger all in the way of tools in the back of them but at least there is room to hang their suit jacket. W**kers, present company excluded.

Sod Gordon, Happy Xmas OGB and all who WORK for aliving

[LRAC]

Of course the reason the TW*T has done this is because loads of people that have swopped their company cars (which are a perk for most of them) to Crew cabs. Classed as a commercial vehicle so they pay hardly any tax (or did). Looks good on the drive to impress the neighbours. Makes em look hard coz they've got ANIMAL written down the side. Can't get bugger all in the way of tools in the back of them but at least there is room to hang their suit jacket. W**kers, present company excluded.

there always has been and always will be schemes for tax avoidence its just a case of finding them. I presume you all claim tax relief on the following:

1, cleaning of work wear and vehicles
2, tool allowance
3, buy your tools through the company and just pay them the net price as the employer will claim the VAT back.
It has always been difficult for the employed but some are available.

Become a company director and pay yourself minimum wage and take the rest as a dividend which means only 10% instead of 25% or 40%.
OK the last one needs you to start a company but most engineers will eventually try it on their own? Its all out there its just spotting it?

The tax man is always 36 months behind any new schemes so start looking NOW!

And don't forget the big one DEATH TAX or inheritence tax as they call it,it is completly avoidable if you take the right action.

Lrac

[old gas bottle]

well i,am going to write to the tax man for more than one reason,
for a start i dont aggree with the robbing b~~~~d,

its robbery by anyother name, its car tax on a commercial vehicle,not like drving round in a nice car,

as i said before,if people could afford it,in a lot of cases they would have both,

my lads struggling to afford his first house and had to sell his car to help finance it,

more importantly from my point of view,i own the company and buy our motors,only the two granted,but 30k,s worth, we pax duty on the diesel,road tax,buying the thing,vat,exersize duty,etc, and private milage is small,

i am not willing to leave them parked outside our unit for every scumball in the area to break into and pinch the contents to sell for drugs,pushing EVERONES insurance up even further,has anyone thought of that !,thay will be stoping on our drives where they are safer and accessable in case of emergency call outs.

so gordi,kiss my brown un! pardon the pun.if any of you guys want to pay it go ahead,i wont.

[djbe]

so gordi,kiss my brown un! pardon the pun.

I won't be paying either, nor will the other engineer that I employ.

LRAC, I already use all methods possible to reduce my tax bill which include many of the things you mentioned plus some that you haven't.

It doesn't stop it hurting though when I get that big bill at the end of the year.

[LRAC]

Hi guys

Only one thing certain in this life,

DEATH & TAXES

Lets hope we all have a prosperous new year.

Kind regards
Lrac

[chillerman2006]

OK guys i,m going out on a limb here, a lot of engineers have had vehicles provided for years and maybe your only means of transport, in which case you will have private mileage.

Here's the killer statement you pay 25% on that £ 3000 which equates to £ 750 per year real money, now of course you can leave your van at work if you don't want to pay that tax.

Think about it you will have to finance a vehicle privately and all the associated costs involved to run it and believe me it will be more that £ 750 quid.

I think at that price its as cheap as chips and i,m not handing it back.

Lrac

Hi lrac

sorry - but i have to disagree here

as written in the article in the service engineer december 2006 the tax is equall to a £20,000 car
how can a sign written up van that is no use to a family man be even considered as a similar benefit

best thing for all in vans is keep a log book of mileage
they do not have to be accurate as you only record places & distance and there is nothing to say you have to take the shortest route - so just add a few miles to each trip if you want to use it for private use and stuff the tax man

my boss and others i know are just gonna state all engineers are on call every night to avoid this problem - how can it be proved your not it cant be - unless the engineer or the boss decides to grass themself up

adding more taxes to a trade like ours which is allready well underpaid is outrageous

worst of all think of the trainee on less than £12k a year - they cant afford to have £60 plus taken from there allready low wages

there is a massive shortage of engineers in this country and the ones that are any good all leave to work in dubia
or australia

more tax means less incentive to get into the game

and i am sure mr brown will be the first to complain when he can not find an engineer to come and sort out the cooling at his office or the houses of parliment or one of his homes

he should slap a big tax on second homes, then there would be more to go round, not on the engineers that keep the country running

chillerman2006

[old gas bottle]

just thought i would drill my accountant who has just left me his bill and one for the taxman,thanks,

he assures me this tax is aimed at the company directors and reps that run the twin cab pick ups to avoid car tax and that "working" vans are not on the hitlist, meaning that if you get a visit from the taxman and he can see its never had a toolbox in it and its oviousley a pleasure vehicle,your in the brown stickey stuff,however if its a working van and used for call outs [of course it is] you have a strong case not too pay,even better if your partner has a car,

hope this helps,

[LRAC]

this tax is aimed at the company directors and reps that run the twin cab pick ups to avoid car tax.

Hi guys

Just thought i'd put a spanner in the works my gaffer has just bought me a Toyota Invincible, fantastic motor all the gismos and better still van tax rates BARGAIN...................................auto and leather.

OK i'll look like a gypo but hey my tax code has never looked so good

Sorry guy's but fridge kit is in my new pick up so not off the tools yet, i now like my job even more.

Kind regards
LRAC

[Brian_UK]

Hey LRAC, have you done a risk assessment on that new motor?

That high load bay looks like a potential back killer to me and you could break an ankle jumping down from that height.

Enjoy

[LRAC]

Hey LRAC, have you done a risk assessment on that new motor?

That high load bay looks like a potential back killer to me and you could break an ankle jumping down from that height.

Enjoy

As always Brian your spot on, I,m currently looking for some stilts on ebay, and a matress for jumping on to out of the back.

Lrac

[Brian_UK]

..... and a mattress for jumping on to out of the back.

Sorry, you need a mattress for what

On a more serious note I've just received my Tax notification for next year and there it is £3000

So it's on the phone on Monday for me after a quick look at http://www.hmrc.gov.uk to see where I send the C4

[milo]

Hi
Just received my tax notification - van benefit £3000 . Spoke to hmrc and van benefit now removed - took 5 minutes . Good luck .

[djbe]

OK i'll look like a gypo but hey my tax code has never looked so good

You could never be a gypo they don't have tax codes, in fact they don't have have tax, robbin' good for nuthing barstewards

djbe

[old gas bottle]

need a bit of your avitar pic up em ,target practice for the boy,s. glad you have done that milo, proves the point that its not so much the working vans there after.