Industry News from Yes Insurance

People who use company vans out of work hours could face increased tax expenses within a year, according to reports.

The new laws could be introduced in the new financial year, making it more expensive to drive a vehicle which is licensed to a workplace.

If the rules are introduced, it is expected that there will be a severe reduction in the number of vans on our roads, which could lead to fewer van insurance claims being made.

HM Revenue and Customs (HMRC) is behind the initiative which is set to be introduced from April 6th 2007, business advisers PFK told website Creditman.

Drivers could see their tax costs rise from the current £500 to a possible £3,000.

"HRMC's target isn't really the 'white van man'," said director of employment taxes at PFK, Brian Lovie.

"In reality, they're after managers who are driving the new breed of double cab pick-ups which, for tax purposes, are classed as vans.

"But, in closing that 'loophole', the tax man is penalising drivers of ordinary vans for whom this is a major increase," he added.

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