Back to News

Commercial vehicle tax confusion

When is a van not a van? That is the question that began back in August 2017.

A first-tier tribunal (FTT) considered whether three commercial vehicles (two Volkswagen Kombi vehicles and one Vauxhall Vivaro) operated by Coca-Cola should be classified as vans or cars for benefit-in-kind (BIK) purposes.

The legislation states that a van must be a goods vehicle, defined as a vehicle of a construction primarily suited for the conveyance of goods or burden.

Even though the appearance of the three vehicles seemed similar, the Volkswagen Kombi vehicles were found to be cars and the Vauxhall Vivaro was found to be a van.

It meant that the company had to pay an unspecified amount of backdated national insurance (NI), while two drivers 
faced unexpected BIK tax bills for the use of the Volkswagen Kombi vehicles. 

Why? 

The first Volkswagen Kombi was fitted with a removable three-person bench seat in the van’s mid-section as standard, which meant no goods could be carried there with it in place. The rear cargo section was approximately 3 cubic metres and separated from the mid-section with a central partition.

The second Volkswagen Kombi had three removable seats in the mid-section, and was modified with a fixed partition to separate it from the 3 cubic metre rear cargo area.

Tribunal judge, Guy Brannan, said that as the mid-sections were equally suitable for carrying goods and passengers, they could not be regarded as goods vehicles. He said, “In essence, therefore, the Kombis were both multipurpose vehicles.”

GET IN TOUCH
Call us today on 01536 536 590

Back to News

GET IN TOUCH
Call us today on 01536 536 590

Services

Total Outsourcing

Fleet Management

Multi Bid Contract Hire

Pay as You Go Maintenance Management

Accident Management

Fuel Cards

Risk Management

Public Sector

Daily Rental

Short Term Rental

Light Commercial Vehicle Fleet Management

Fleet Consultancy

Total Outsourcing

Fleet Management

Multi Bid Contract Hire

Pay as You Go Maintenance Management

Accident Management

Fuel Cards

Risk Management

Public Sector

Daily Rental

Short Term Rental

Light Commercial Vehicle Fleet Management

Fleet Consultancy

News & Media

Brexit and the cost of vehicle repairs

Vehicle maintenance costs can be expensive, volatile and challenging to control at the best of times. But according to Dan Godfrey, senior technician in the Grosvenor Group’s...

More

The Future of Automotive is 'EASCY': 5 letters that could shape our future

The car of the future is electrified, autonomous, shared, connected and yearly updated – or “eascy” for...

More

The Grosvenor Group is committed to investing in young talented individuals and in the latest edition of our magazine we feature our apprentices and trainees. Read the full article in The Grosvenor Group's magazine... https://t.co/A95P4GL9RT https://t.co/DbTAycjpBe