The Van Benefit and Car and Van Fuel Benefit Order 2024
Introduction:
The Van Benefit and Car and Van Fuel Benefit Order 2024 (“the Order”) is new legislation that came into effect on April 6, 2024. The Order amends the Income Tax (Earnings and Pensions) Act 2003 and makes various changes to the tax treatment of van benefits and car and van fuel benefits.
Key Changes:
Van Benefits:
- The Order increases the percentage of the list price of a van that is treated as a taxable benefit from 35% to 40%.
- This means that employees who are provided with a van by their employer will now pay tax on a higher proportion of its value.
Car and Van Fuel Benefits:
- The Order introduces a new flat-rate benefit charge for car and van fuel benefits.
- The flat-rate charge will be £663 for cars and £915 for vans.
- This means that employees who use their employer’s car or van for private journeys will pay tax on a fixed amount, regardless of the actual fuel costs incurred.
Exemptions:
The Order provides exemptions from the van benefit and car and van fuel benefit charges for certain employees. These include:
- Employees who use their employer’s van solely for business purposes.
- Employees who live in remote areas and use their employer’s van for essential travel.
- Employees who have a disability and use their employer’s van for mobility purposes.
Penalties:
The Order also introduces penalties for employers who fail to comply with their obligations under the new rules. These penalties can be up to £3,000 per year for each employee who is provided with a van or car and van fuel benefit.
Impact:
The Order is expected to have a significant impact on businesses and employees. Businesses will need to review their policies on providing vans and car and van fuel benefits and may need to make changes to avoid paying additional tax. Employees will also need to be aware of the changes and may need to factor the increased tax liability into their financial planning.
Conclusion:
The Van Benefit and Car and Van Fuel Benefit Order 2024 is a significant piece of legislation that will change the tax treatment of van benefits and car and van fuel benefits. Businesses and employees need to be aware of the new rules and make necessary adjustments to ensure compliance.
The Van Benefit and Car and Van Fuel Benefit Order 2024
The AI has provided us with the news.
I’ve asked Google Gemini the following question, and here’s its response.
UK New Legislation a new article on 2024-12-17 11:56 titled “The Van Benefit and Car and Van Fuel Benefit Order 2024”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
83