Company van drivers can save £600 per year net on the Van Benefit Charge by using the VL-Fleet vehicle tracking system from VeriLocation. From 6 April 2007, workers who take home company vans will see a massive increase in their tax liability if they are unable to prove that they do not use the van for private purposes.
The Van Benefit Charge was introduced in 2005, but from April 2007, the taxable benefit where an employee has private use of a company van increases from £500 to £3000 (a rise of 600%). However, this charge is nil if the van is only available to the employee for business travel and commuting, providing any private use is deemed to be 'insignificant'.
Using VL-Fleet, financial controllers, business owners or human resources staff can determine exactly how much private use (if any) a vehicle is being used for. Employers are required to substantiate the end of year returns they make on form P11D, including nil returns. Where a nil return is made, the employer must demonstrate that the necessary conditions have been complied with in practice. Useful information will include the terms and conditions on which the van is made available to the employee and mileage records showing actual use.
VeriLocation's VL-Fleet, is a real-time vehicle tracking system using GPS (Global Positioning System) technology. It is straightforward to use and can be accessed over the internet so no additional software is required. VL-Fleet provides a comprehensive audit trail and information can be easily obtained from daily, weekly or monthly reports. This makes expenses claims and tax returns simple to process. In addition, expenditure on VL-Fleet is tax deductible.