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.”