Cars, vans and benefits in kind

The ongoing dispute between HMRC and Coca-Cola European Partners Great Britain Limited (Coca-Cola) and two of its employees (Noel Payne and Christopher Garbett) was heard before the Court of Appeal on the 10 and 11 June 2020 (Case Nos: A3/2019/1203 and A3/2019/1215). The case relates to vehicles provided to employees of Coca-Cola and whether these should be considered to be a van or a car for benefit-in-kind purposes.

The decision of the Appeal Court judges (see tinyurl.com/y5uv7ets) adds some useful interpretation to the wording of the tax rules and can be used by employers who have provided similar vehicles to their employees. We wait to see whether this matter will find its way to the Supreme Court.

Background to the case 

Basically combination or ‘combi’ vans look like a van but have at least one extra row of seats doors or windows behind the driver – thus...