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Company Van Changes


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From 6 April 2005 van drivers can escape tax and employers can remove their Class 1A NIC charge, if employer provided vans are used privately only for work to home travel and very minor incidental private use. This will then remove concern about the impending hike in company van tax from 6 April 2007 - when the scale charge on a new van will increase from £500pa to £3000pa, and an annual fuel scale charge of £500 will also be introduced.

Source:
KPMG
March 2005

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