Industry News from Yes Insurance

Van drivers are being warned to prepare themselves for changes to tax laws that will affect the use of company vans outside of working hours.

Currently it costs van drivers just £500 tax per year to take their company van home after work, but new legislation will see that figure rise to £3,000.

The change will be implemented in April 2007 and is likely to have a big impact on the number of van drivers using company vehicles outside of work hours.

Drivers and businesses are now being told to get ready for the change in order to avoid financial disaster when the time comes.

"April 2007 may seem a long way away but businesses need to decide right now how they want to manage the tax change," says Steve Crawshaw, LCV manager at vehicle management company LeasePlan.

The impact the tax increase will have is unclear. On the one hand, drivers may choose not to drive their vans after work, meaning firms will have to arrange for secure overnight parking.

Equally, drivers may demand increased wages to cover the added cost, which would cause serious financial ramifications for the companies.

Finally, drivers may decide to use the vans in their own time more often, rather than simply driving them to and from work, which means there is an increased chance of being involved in an accident and having to claim on their van insurance.

© Adfero Ltd