Firstly, this applies to you because you work through a limited company. It doesn’t apply to the self-employed.
If you’re an employee then you’re taxed on £3000 if you use the van for private use. Journeys between home & work don’t count as private use, nor does stopping off on the way to buy a newspaper, nor does ‘insignificant’ travel – which is described as ‘like taking an old Ma**ress or other rubbish to the tip once or twice a year’.
You also pay tax on an extra £500 if you don’t re-imburse your employer for fuel used.
The company is liable to Class 1A National Insurance on the same amounts.
Posted under Employment
Posted by Alec at 1:15 pm, June 4, 2007