Hello I have been checking what taxes are levied on use of company vans.
It appears that in the tax year 04/05 if a company van is available for use i.e you take it home at night and use it just for commuting to and from your place of work and the vehicle is less than 4 years old,the charge is £500. On the hmrc website it then goes on to say that if you pay tax at the basic rate it is (£500x22%)= £110. So then ,are we saying that the basic rate taxpayer has to pay HMRC £110 per year?.
How is this amount collected? Does the individual have to declare it or is it up to his employer to declare it?. How is it collected i.e as a lump sum at the end of the tax year or in monthly payments?.
Is the onus/responisbility on the individual to complete and annual tax assessment and pay the money to HMRC himself?
Also i beleive the situation is changing in tax year 05/06 so that there is no tx charge if the van is only used for commuting to/from work?
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