E&Y urges swift response to van tax plans

E&Y urges swift response to van tax plans

Ernst & Young has urged employers to respond to a consultation document on changes to the taxation of company vans which, the firm claims, will increase their tax burdens if the proposals are approved.

Link: Company car loophole investigated

The consultation document setting out the changes is open to comment until the 31 July 2003 and proposes that employees that use company vans for private trips be taxed based on the CO2 emissions of the vehicle instead of the existing £500 scale charge.

In addition, the Inland Revenue plans a different basis of taxation for employees that use a company van occasionally compared to those that use it more regularly.

According to E&Y, the proposals will result in an increase in the tax liabilities for employees, while employers who will see an increase in Class 1A national insurance liabilities.

Furthermore, companies maybe be forced to compensate employees that use their vans, as they are unlikely to have any choice over the type of vehicle they use.

‘We urge employers to respond to the consultative paper within the time specified to ensure the Inland Revenue is aware of the impact of the suggested changes,’ the firm said.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource