Whether a vehicle is classified as a ‘car’ or ‘van’ for the purposes of ITEPA 2003 can be a costly distinction for both employers and employees. The Court of Appeal recently addressed this question inPayne and others v HMRC [2020] EWCA Civ 889 in relation to vehicles provided by Coca-Cola to its employees. The court held that because the vehicles could not be regarded as ‘primarily suited’ for the conveyance of goods – a test that should not turn on a fine distinction – they are cars. Employers and their advisers should review the tax treatment of their fleets and think carefully before purchasing new vehicles.
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Whether a vehicle is classified as a ‘car’ or ‘van’ for the purposes of ITEPA 2003 can be a costly distinction for both employers and employees. The Court of Appeal recently addressed this question inPayne and others v HMRC [2020] EWCA Civ 889 in relation to vehicles provided by Coca-Cola to its employees. The court held that because the vehicles could not be regarded as ‘primarily suited’ for the conveyance of goods – a test that should not turn on a fine distinction – they are cars. Employers and their advisers should review the tax treatment of their fleets and think carefully before purchasing new vehicles.
If you are not a subscriber, subscribe now to read this content.
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