HMRC investigating private use of company vans
Concerns tax is being underpaid on company vans prompts taxman to send out detailed questionnaires
HMRC is investigating the tax status of company vans following concerns the tax and National Insurance Contributions are being underpaid.
Big Four firm KPMG revealed that the taxman has been issuing detailed questionnaires to a number of companies on how they monitor the private use of company vans.
The questionnaires ask for the employer’s definition of insignificant private use, details of whether vans are fitted with mileage tracker devices and details of van policies for the past three years, according to Fleet News.
Employees who use company vans for private use pay tax on a £3,000 flat-rate value for the van and £500 for free or subsidised fuel for private use.
However, some advisers are less than convinced that HMRC has begun a new drive.
“We are aware that there is sometime a lack of policing of this policy by employers but I do not see at the present time this is a major issue for HMRC to pursue,” said Alastair Kendrick, director, tax employment services at Mazars,