{"id":8517,"date":"2016-03-18T11:43:56","date_gmt":"2016-03-18T11:43:56","guid":{"rendered":"http:\/\/www.vanrental.co.uk\/vanblog\/?p=8517"},"modified":"2016-03-18T15:24:38","modified_gmt":"2016-03-18T15:24:38","slug":"budget-2016-how-will-van-tax-change","status":"publish","type":"post","link":"https:\/\/www.vanrental.co.uk\/vanblog\/archives\/8517","title":{"rendered":"Budget 2016: How will van tax change?"},"content":{"rendered":"<p><img loading=\"lazy\" class=\"alignright size-full wp-image-5658\" src=\"https:\/\/www.vanrental.co.uk\/vanblog\/wp-content\/uploads\/2013\/12\/poundsign.jpg\" alt=\"Money\" width=\"100\" height=\"117\" \/>This year&#8217;s budget contained few real changes for\u00a0van owners, but there will be modest inflation-linked increases in road tax (vehicle excise duty) for vans from April:<\/p>\n<p><strong>VED for 2016\/17 for vans registered before 1 March 2001:<\/strong><\/p>\n<ul>\n<li>Engine size 1,549cc and below: \u00a3145 (no change)<\/li>\n<li>Engine size above 1,549cc: \u00a3235 (up \u00a35)<\/li>\n<\/ul>\n<p><strong>VED for\u00a02016\/17 for vans registered on or after 1 March 2001:<\/strong><\/p>\n<ul>\n<li>Euro 4 and Euro 5 compliant vans: \u00a3140 (no change)<\/li>\n<li>All other vans: \u00a3230 (up \u00a35)<\/li>\n<\/ul>\n<h3>What about other taxes?<\/h3>\n<p><strong>VAT:\u00a0<\/strong>Businesses that are VAT registered can reclaim the VAT paid\u00a0when purchasing a van.<\/p>\n<p>For vans that are also used privately,\u00a0only part of the VAT can be reclaimed, in proportion to the amount of business use. So if\u00a075% of your van usage is for business, you can reclaim 75% of VAT.<\/p>\n<p><strong>BiK (Benefit in Kind):\u00a0<\/strong>Drivers that are provided\u00a0with company vans which they can also use privately have to pay\u00a0Benefit-in-Kind tax.<\/p>\n<p>This is calculated using your income tax rate on a fixed value of \u00a33,000. So a 20% tax payer would have to pay 0.2 x 3000 = \u00a3600 per year in BiK tax. That&#8217;s \u00a350 per month.<\/p>\n<p>Vans used for business are generally expected to be kept\u00a0on work premises overnight and at weekends, although\u00a0they can be used for commuting between home and a place of work. However, they cannot be used for\u00a0<em>any<\/em> other personal use.<\/p>\n<p>The same rules apply to double-cab pick ups, which have become popular company vehicles\u00a0as they are treated as commercial vehicles for BiK tax, and attract a lower rate of BiK tax than many upmarket cars.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A round-up of VED (road tax) changes for vans in the Budget 2016, plus a summary of how VAT and Benefit-in-Kind tax work for vans.<\/p>\n","protected":false},"author":2,"featured_media":5658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[8],"tags":[2000,2001],"_links":{"self":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/8517"}],"collection":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/comments?post=8517"}],"version-history":[{"count":3,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/8517\/revisions"}],"predecessor-version":[{"id":8527,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/posts\/8517\/revisions\/8527"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/media\/5658"}],"wp:attachment":[{"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/media?parent=8517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/categories?post=8517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vanrental.co.uk\/vanblog\/wp-json\/wp\/v2\/tags?post=8517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}