Martin Saarinen

When is a van not a van? When it’s a car, according to the Treasury tax guidelines

MOST people won’t have a hard time distinguishing between a van and a car, but it’s not so easy for the Government, it seems.

In recent months the Treasury has begun challenging the views of employers on vans and classifying some as cars if they have features such as a second set row of seats. It’s worth noting here that cars attract a higher level of tax than vans do.

According to Treasury guidelines, a van is a goods vehicle that is built primarily for that specific purpose. In the Treasury’s eyes, a second row of seats or rear passenger windows mean the van may not be purely intended for carrying goods.

But there’s little consistency here. HM Revenue and Customs (HMRC) has said it accepts double-cab pick-ups with a payload of one tonne or more as a van for benefit purposes, but has begun insisting that other types of vans with a second row of seats fitted are cars, despite both the Driver and Vehicle Licensing Agency (DVLA) and insurance companies labelling them as vans and light goods vehicles.

In a recent tribunal involving two Volkswagen Transporter T5 Kombis and a Vauxhall Vivaro, the two VWS were found to be cars in the eyes of the law, yet the Vivaro was classified as a van. According to the HMRC’S expert, the VWS shared many interior features such as sat-nav and reclining seats that are often found in cars, and deemed the Kombis not to be primarily suited to carrying goods.

The Government must make its classifications clearer. It’s nonsense for one agency to declare a vehicle a van and another to deem it a car and tax drivers who bought it as a van more.

“In recent months the Treasury has begun challenging the views of employers on vans”