You should be aware of how HMRC may classify your crew van. There is some confusion when it comes to the taxation of these vans and whether they’re classed as cars or commercial vehicles for benefit in kind (BIK) tax – the same kind of conundrum that can arise with double cab pick-ups and their low tax attractions .
WHAT do you do if you want to combine business and pleasure when picking your next van? Well, what you’re looking for is a crew van with the attraction of low company van tax.
Why? So you can either carry a team of workers or the family – and most crew vans offer load areas big enough to suit most purposes!
However, you should be aware of how HMRC may classify your crew van. There is some confusion when it comes to the taxation of these vans and whether they’re classed as cars or commercial vehicles for benefit in kind (BIK) tax – the same kind of conundrum that can arise with
double cab pick-ups and their low tax attractions .
First place to check us HMRC’s
car-derived van and combo list while we’d always advise looking at the payload for any model that you’re considering. If it is over a tonne and the ‘primary use’ is carrying goods and not people, then it’s a CV as far as HMRC are concerned.
Official HMRC guidance defines a van as a vehicle of a construction primarily suited for the conveyance of goods or burden.
The guidelines state that:
- the test is applied at construction
- a vehicle designed and marketed as a multi purpose vehicle is unlikely to be a van
- a vehicle with side windows behind the driver and passenger doors, is unlikely to be a van, particularly if fitted, or capable of being fitted, with additional seating behind the driver’s row irrespective of whether fitted in the vehicle at the time.
The crux of the issue is a matter of vehicle use rather than simply its construction.
If it is solely used for business it is a van, but if the crew van has private use it becomes classified as a car for benefit in kind purposes.
Check out HMRC’s guidelines.
Yet if it is classed as a car by HMRC it will have a P11D value attached to it and will attract BiK tax of either 20% or 40%. However even if it is classified as a car for BIK purposes,
check it out on our company car tax calculator, it is still a van when it comes to road tax with first year VED of £250.
Be aware though, that not all crew vans have a payload of over a tonne and adding extras can have an impact on this. Another point to be aware of is that the HMRC does not always simply apply the load metric to CV taxation and, over the years, several manufacturers have reported occasionally seeing inconsistencies in their approach and treatment of the van class.
Our advice would be to check with the van dealer as to the weight of the vehicle, once any optional extras are fitted, then check with your local tax office. If you don’t, you could end up with unexpected VAT issues, not to mention unexpected benefit in kind taxation.
Remember it is down to you, the individual, to check your own personal tax situation, with regards to a Crew Van.
