van benefits: 2006/7 - July 2006

Where a business van is provided to an employee and there is some private use, the benefit charge is nil if both requirements are satisfied throughout the year:-

1. The van must only be available to the employee for business travel and commuting-it must not be used for any other private purpose except insignificant journeys.
2. The van must be available to the employee mainly for use for the employee's business travel.

If both requirements are not met the charge for 2006/07 is:-

• £500 (van less than 4 years old)
• £350 (over 4 years old)

Please note that from 6th April 2007, the age of the van is no longer taken into account and the charge is to be increased to £3,000. We would therefore advise our clients to consider any arrangements you have in place for business vehicles and their use by employees/directors - we would be pleased to assist.

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