Taxing your van is fairly simple. The tax you'll need to pay is known as Vehicle Excise Duty or VED. This is the tax paid to the DVLA to keep your van on the road. After getting a new van, one of the first questions you might ask is 'how do I tax my van?' - we can help with that…
What Is HMRC Definition Of A Van
First, to check the tax you'll need to pay, you need to define the vehicle you have. HMRC uses a set criteria for assessing what is classed as a van. If your vehicle is predominantly used for carrying goods rather than people and its gross weight (fully laden) is 3,500kg or below, then your vehicle is classed as van.
How Much Is Road Tax For Commercial Vehicles?
The cost of road tax for commercial vehicles depends on the age of your van (and the emissions standards) and whether you want to pay in one go or with a monthly Direct Debit.
See the table below to calculate how much van tax you'll pay:
Date You Registered Your Van
Current Cost (Single Payment - Annual)
Current Cost (Monthly DD For 12 Months)
Current Cost (Single Payment - For 6 Months)
Current Cost (Monthly DD For 6 Months)
|All Vans Registered after 1/3/01 including Euro 6||£260||£273||£143||£136.50|
Euro4 vans registeredfrom 1/3/03 to 31/12/06
Euro5 vans registeredfrom 1/1/09 to 31/12/10
How To Pay Your Road Tax (VED)
Unlike the days of 'going to the DVLA to tax my car' there are now a range of ways to pay your VED. However, you will need different documentation depending on which way you decide to pay this and whether you're paying your tax for the first time or renewing. You can pay your road tax online, over the phone or at the post office.
What Is Company Van Tax?
Company Van Tax is the charge you'll pay if you use a company van for personal use. This tax is also called the Van Benefit Charge.
It's important to decide whether you use your van for private use which dictates whether you pay this tax. Private use is defined as use for anything other than your work commute (although a quick stop off to get a coffee or a newspaper is still counted as non-private use).
What Is Benefit In Kind Tax?
The Van Benefit Charge is an annual benefit in kind tax. It's the tax you pay on a company van if you use it for personal use and is also called Company Van Tax.
How Is Benefit In Kind Tax Calculated?
The Van Benefit In Kind Tax For vans is fixed (rather than based on C02 emissions). This tax is currently £3,350 - meaning you are taxed on this amount. So:
- If you pay 20% tax, you'll pay £670 a year.
- But if you pay the higher tax rate of 40%, you'll pay £1,340 a year.
Is Electric Company Van Tax Cheaper?
Yes, it is. If your company van is electric and you use it for private use, you'll still have to pay the Van Benefit Charge. But good news, this is charged at a reduced rate.
- So for the 20% taxpayer, you'll pay £269 per year.
- For the 40% taxpayer, you'll pay £536 per year.
Van Leasing Tax Benefits
The main tax benefit to leasing a van is that if your business is VAT registered you're able to claim back your monthly payments as a tax deductible expense.