Tradesmen ‘unaware’ of looming £100m tax raid on company vans as cost of second hand vehicles soars
More than three out of five tradespeople will be caught off guard by a £100million tax raid, a new survey suggests.
Some 62 per cent of more than 1,000 van drivers surveyed by online vehicle marketplace Auto Trader said they were unaware of the looming rise in company van tax announced in Chancellor Jeremy Hunt’s autumn statement.
Basic rate taxpayers currently paying £720 as a benefit in kind to use company vans for personal journeys will pay an additional 10 per cent – £72 a year – from April 6 next year. Higher rate taxpayers face a £144 charge.
Shock hike: Some 62% of more than 1,000 van drivers surveyed said they were unaware of the looming rise in company van tax announced in Chancellor Jeremy Hunt’s autumn statement
Increasing the tax in line with the consumer prices index measure of inflation – currently near 40-year highs – will raise an extra £15million a year, according to Treasury forecasts.
That will be worth more than £100million by the end of the decade.
April’s tax rise follows soaring fuel costs. The results of the survey, shared with the PA news agency, indicated that more than a quarter (27 per cent) of van drivers have been hit by at least £500 in extra running costs this year.
Van purchase costs are also up. The average price of used vans on its marketplace has risen by £1,300, or 7 per cent, to £19,429 since November 2021. New van prices are up £4,300, or 14 per cent, to £33,821 amid supply problems.
Auto Trader said: ‘Our findings show that the new fresh tax raid coming their way in April will be a complete shock to most van drivers, adding to the heavy burden that they’ve already faced this year.’
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