PART 2: TAX
Lower Charge Thresholds from 6th April 2002 – 5th April 2008
Year
CO2 g/km Tax %
Year
CO2 g/km Tax %
2002/2003 COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS 165 15 2005/2006 140 15 2003/2004 155 15 2006/2007 140 15 2004/2005 145 15 2007/2008 140 15 COMPANY VANS Since 6th April 1993, where vans have been made available for the private use of employees - including travel to or from work - a basic scale charge has been assessed on a personal basis. Reductions may be applied if the employee contributes towards the cost of private use, or where the van is not available for the full year. If private use is available on a shared basis, the benefit of all vans shared are added and the total is divided by the number of employees to whom they are available, subject to a maximum rate at the level equivalent to that for the use of a single van. Scale rates – 6th April 1993 – 5th April 2005 • £500 basic charge • £350 where the vehicle is four years old or more at the end of the tax year Prior to 6th April 2005, a chargeable benefit generally occurred where a van was available for use. It was not necessary to establish whether, or to what extent, actual ‘personal’ use took place. A nil rate applied where private use was insignificant in quantity and quality. Company van benefit from 6th April 2005 From 6th April 2005 employees have no tax liability where, only: • work journeys are undertaken, or • work journeys and travelling between home and work take place, and also where private use is insignificant No printing, copying or reproduction permitted. Company van benefit from 6th April 2007 From 6th April 2007 the discount for older vans was removed, the scale charge for unrestricted private use increased to £3,000 and where an employer provides free or subsidised fuel for private mileage an additional fuel charge.
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