With increasing benefit in kind charges on company cars there has been a move towards people running company vans and taking advantage of lower vehicle and fuel benefits. Here are the details...
In order to qualify for this treatment, the primary construction of the vehicle has got to be for the carriage of goods. In recent years this has been relatively stable - if the payload capacity of the pickup exceeds a metric tonne, HMRC accepted that these vehicles can be treated as a van for benefit in kind purposes.
With such similarities in the construction of the Kombi van, this has led to this concession being applied to the Kombi vans as well. However, in a recent case, a judgment was reached that the primary construction of the kombi van was not for the conveyance of goods alone but rather that its purpose was for the conveyance of both goods and people equally. This means that the Kombi did not meet the requirement to be considered to be a van and therefore for benefit in kind purposes it is a car. This is an area we can expect HMRC to continue to challenge having won this recent case.
With such similarities in the construction of the Kombi van, this has led to this concession being applied to the Kombi vans as well. However, in a recent case, a judgment was reached that the primary construction of the kombi van was not for the conveyance of goods alone but rather that its purpose was for the conveyance of both goods and people equally. This means that the Kombi did not meet the requirement to be considered to be a van and therefore for benefit in kind purposes it is a car. This is an area we can expect HMRC to continue to challenge having won this recent case.
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