I would like to draw your attention to a new dual purpose lifestyle vehicle that transforms by magic from a beast of burden into a luxury limousine, but cannot.
The answer, somewhat predictably, is down to H M Revenue & Customs. HMRC views “kombis” (vehicles with a load area split between passengers and goods) in many circumstances as vans for VAT purposes but cars for income tax and corporation tax. Popular vehicles fitting this category include variants of the Ford Transit and Volkswagen Transporter. The tax at stake can be quite substantial and the nuances between what is a car and a van depend on specifications of individual vehicles including passenger area, load area, payload and even options & accessories fitted – including drivetrain; four wheel drive could get you out of a muddy field but stuck with unwelcome tax…
James said clients should contact us before committing to purchase or contract hiring a commercial vehicle because a little flexibility in your ideal specification could save a lot of tax. Reliance should not be placed upon statements made by salesmen because they won’t be a valid defence if you are subject to a tax enquiry. We love the great outdoors and the fun associated with multipurpose vehicles be it surfing, mountain biking or glamping at festivals – if you do too, please make sure that you buy wisely to save the taxman spoiling your valuable, hard-earned time out.