When is a van not a van?

January 18, 2018

Torr Waterfield explain why it's not important whether the vehicle is a van. What's important is that it's not a car.

 

For VAT purposes it will be a car if:

 

It is of a kind normally used on public roads, has three or more wheels and either:

 

  • is constructed or adapted for carrying passengers; or

  • has roofed and windowed accommodation behind the driver.

 

Excluding:

 

  • Vehicles capable of accommodating only one person;

  • Vehicles with a gross weight of at least three tonnes;

  • Vehicles with a payload of at least one tonne;

  • Minibuses (for 12 or more people);

  • Caravans;

  • Ambulances, prison vans and other special purpose vehicles.

 

For P11D/capital allowances purposes it will be a car if:

 

It is a mechanically propelled road vehicle, which is not:

 

  • a goods vehicle (of a construction primarily suited to the conveyance of goods or burden of any description);

  • a motorcycle (fewer than four wheels and an unladen weight of no more than 425Kg);

  • an invalid carriage (specifically designed for disabled use and an unladen weight of no more than 254Kg); or

  • a vehicle of a type not commonly used as a private vehicle and unsuitable for such use.

 

People (at least living ones) aren't goods or a ‘burden of any description’, so anything with seats in the back (other than a double cab pick-up type vehicle with a one tonne+ payload) is likely to be regarded as a car for direct tax purposes.

 

Anything with seats in the back and/or roofed and windowed accommodation behind the driver (other than a double cab pickup with a one tonne+ payload) is likely to also be a car for VAT purposes.

 

For clarification use the link below.

 

http://www.hmrc.gov.uk/manuals/eimanual/eim23110.html

 

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