Tax tip: Do your clients provide their workers with a van?

Do your clients provide their workers with a van?

It is a common practice in some business sectors for employers to provide some of their employees with a ‘van’ for the better performance of their role. Moreover these vans have often been available for the employees to use privately and as such they have been liable to a fixed income tax benefit charge (£3 960 for the 2024-25). This charge has typically been lower than the charge associated with company cars.

However given the development of ‘double cab pick-ups’ and similar vehicles – that is vehicles which combine some of the features of a van and a car – and the ruling in the Coca Cola case (Payne and others v CRC [2020] STC 1883) advisers need to consider helping their corporate clients review their vehicle fleet in the run-up to the 2025-26 tax year. That...