With drivers of business vans facing the possibility of a major tax rise this year, National Car Rental’s Frank Reynolds suggests rental could be the solution.At the start of this financial year, the tax on business van drivers rose 600%.

The L500 annual benefit-in-kind tax liability for new vans rose to L3000 for the 2007/08 tax year.

For a 22% tax payer the tax liability increased from L110 to L660 – but only if there is private usage by the driver. If the company also pays for private fuel, then this is also subject to tax.

This will have a big impact on small businesses using vans for business and leisure purposes.

Clearly these businesses do not have the time or resources to monitor and track vehicle usage to satisfy the taxman. Quite rightly, they may feel penalised for utilising their fleet rather than taking on additional vehicle for personal use.

Small businesses represent the engine room of the economy yet they are facing more and more of a legislative burden.

One way to ensure your business – and your van drivers – stay within the tax regulations is to consider rental as a viable option.

The rental can cover short, medium and longer term requirements, supported by delivery and collection and backed up by online management information – this will help businesses keep a vital record of their usage.

This enables businesses to upscale and downscale their vehicle fleet according to real rather than predicted demand using vans exactly suited to the job.

As they say, tax doesn’t have to be taxing. Consider van rental to alleviate your tax burden.

If you want to know more about how the van tax might affect your business, then click on the following link to our Law & Tax section: www.businessmotoring.co.uk.