Financial Focus On….. Will HMRC now try to reassess some vans as cars?
WHEN is a car not a car? This is a question that has interested the tax office for years and has had the effect of costing taxpayers - both individually and in business - substantial amounts if they get it wrong. A car is not a goods vehicle. Before
the turn of the
century, the writer argued this point with an Inspector of Taxes who took the position that a Mitsubishi Shogun owned by a forestry company was still a company car even though it had had the rear seats removed, had been fitted with winches front and rear, increased suspension height, generators and a host of other adaptations (including a tachograph) fitted for its working life. In those days, the company car benefit was dependent on the annual mileage and as the machine in question undertook less than 2,500 business miles per year, but had had such extensive accessories fitted, the company car taxation at stake was quite substantial. After extended correspondence,
Revenue finally conceded that
whilst the
the Inland vehicle may
have been a “car” when it was manufactured, after adaptations, it was now primarily suited for the conveyance of goods and therefore no longer a car. This complex argument is still with us today as the recent Coca Cola tax case has proven. Coca Cola provide their UK technicians
the VW Kombi in this case was classed as a car for benefit-in- kind purposes. Naturally, the Coca Cola case
is specific to the facts in question but the point remains that a van is only a van for income and corporation tax purposes if it is primarily suited to the carriage of goods. Anything that is not (or has dual capability) defaults to being classed as a car. In addition to the benefit-in-kind effects for employees (and the National Insurance effects for employers) there may then be a knock-on effect on the timing and rate of capital allowances with vans being classed as general plant (and potentially available to be included within an Annual Investment Allowance claim) whereas cars have no accelerated allowances and a reduced annual rate of relief. To paraphrase a meerkat – Simples? Unfortunately not as we have not yet finished. For VAT purposes, a van it has a payload tonne
is a van if capacity
of one or with a choice
of either a VW Transporter T5 Kombi or a, seemingly comparable, Vauxhall Vivaro. The Vivaro left the factory in the appearance of a panel van but was later modified by Coca Cola to fit a second row of seats (which did not span the entire width of the vehicle and could only be removed with tools) and an additional
window.
The VW left the factory also appearing like a panel van but, critically, had side windows and full-width removable rear seats which had to be removed during working hours. Both vehicle types were then further adapted to include racking and storage areas. HMRC accepted that the vehicles should be considered to have been “constructed” after
the adaptations was decided that storage and it the Vivaro
was considered to be a van as the seats did not span the width of the vehicle allowing additional
alongside
the rear seats. The VWs failed to be classed as vans for tax purposes as the removable seats should be considered as part of the construction and as a result the VWs were deemed equally capable of carrying passengers or loads (and the requirement of the seat removal during working hours had no bearing on how the VW had been constructed). As such, not being primarily suited for the carriage of goods,
• ‘A’ Rated Windows and Doors • Conservatories & Porches • Double Glazed Units & Specialist Glazing • Fascia Soffit & Cladding • Repairs & Window Maintenance • Fly Screens
• Hardie Planks in 26 different colours
JOHN BALLS GARAGE FRISTON
Tel: (01728) 688 509 Free collection & delivery service 10 mile radius
• MOT TESTING • SERVICING • REPAIRS
• TYRES & EXHAUST • AIR CONDITIONING SERVICING
Always a selection of used cars JUNE 2019 DAY EXCURSIONS
29TH / 30TH MAY: SUFFOLK SHOW ........ £14.00 SAT 1ST JUN: CAMBRIDGE ................... £20.00 SUN 2ND JUN: LITTLE BENTLEY GARDEN SHOW ...................................................£23.50 SAT 8TH JUN: ROMFORD....................... £22.00 SUN 9TH JUN: WISLEY GARDENS ......... £63.00 SAT 15TH JUN: LONDON ZOO ................ £55.00 SAT 15TH JUN: MADAME TUSSAUDS ... £55.50 SUN 16TH JUN: GARDENERS WORLD LIVE ....... ..............................................................£60.00 SAT 22ND JUN: WOBURN ABBEY & GARDEN SHOW ...................................................£43.50 THUR 27TH JUN: NORFOLK SHOW ........ £36.50 SUN 30TH JUN: WESTFIELD SHOPPING CENTRE ................................................£24.00 SUN 14TH JUL: DUXFORD FLYING LEGENDS .... ..............................................................£49.50 THUR 18TH JUL: ELY .............................. £20.00 THUR 1ST AUG: WELLS & HUNSTANTON £21.00 19TH /20TH /21ST JUL: LATITUDE FESTIVAL (TRAVEL ONLY) ....................................£15.00
THEATRES & CONCERTS THUR 13TH JUNE: WESTLIFE ................ £120.00
FRI 19TH JUL: NEWMARKET NIGHTS – THRILLER LIVE .........................................................£53.00
SAT 10TH AUG: WICKED ...........................£76.50
WED 21ST AUG: 9 TO 5 ................................£110 WED 28TH AUG: LION KING ......................£89.50 THUR 5TH SEPT: TINA TURNER ...................£132 THUR 28TH NOV: & JULIET .......................£66.50 SUN 9TH FEB 20: CIRQUE DU SOLEIL – LUZIA .... .............................................................. £108.00 THUR 12TH MAR 20: MARY POPPINS ... £104.00
MON 5TH AUG LIVERPOOL & FAB FOUR 4 DAYS £265 FRI 9TH AUG
SAT 10TH AUG ROCAMADOUR & VALLEY OF THE DORDOGNE
SAILING IN THE WEST MIDLANDS
THUR 15TH AUG DURHAM DISCOVERY
MON 19TH AUG WESTON SUPER MARE BARGAIN BREAK
FRI 26TH JUL OLDE WORLDE WONDERS 4 DAYS £299 SUN 4TH AUG CHARMS OF THE SOUTH COAST
HOLIDAYS 5 DAYS £370
3 DAYS £199 8 DAYS £829
5 DAYS £399 5 DAYS £239
MON 2ND SEPT. SOUTH WALES WONDERS 5 DAYS £385 FRI 6TH SEPT. WONDERFUL WORCESTER 4 DAYS £279 FRI 13TH SEPT. LIVERPOOL TATTOO
3 DAYS £225
SAT 14TH SEPT. A TALE OF BYGONE TIMES 3 DAYS £229 SUN 29TH SEPT. KINSALE & THE HAVEN COAST
SUN 29TH SEPT. ISLE OF WIGHT
7 DAYS £699 6 DAYS £399
CALL NOW FOR A COPY OF OUR BROCHURES
ONLINE BOOKING NOW AVAILABLE Telephone 01728 830414
www.bellecoaches.co.uk
Tony Brown’s Funeral Service
Established 1979
Owners of the Greenwood Burial Ground, Farnham Floral tributes and memorials supplied Pre-paid Funeral Plans
The Funeral Parlour, New Cut, Saxmundham, IP17 1EH Tel: 01728 603108 Email:
tb.fs@virgin.net
Website:
tonybrownfuneralservices.co.uk The
Engineers Arms 7 Main Street, Leiston 01728 635 883
The
Every Monday is quiz night! 8th
Engineers Arms 7 Main Street, Leiston 01728 635 883
Every Monday is quiz night! 8th
May Events May Events
Quiz Night 13th
21st 13th 21st
May – Steve & Greta Afternoon gig
1st Monday of Month June Events
May – 80/90’s DISCO 27th May – 80/90’s DISCO
May – Ace Karaoke May – Ace Karaoke
27th
May - Ace Karaoke May - Ace Karaoke
8th - Shattered 16th - Ace Karaoke 23rd - Gal’s Disco
Find us on Facebook Find us on Facebook
LEI 5/FRAM 5
May – Steve & Greta Afternoon gig
above, regardless of the seating arrangements (but watch the payload figures once the weight of any rear roof is included in the computations). As a result, a vehicle could be classed as a car for one tax but as a van for another (and whether or not VAT has been recovered on the purchase in turn affects the “cost” of the vehicle for benefit- in-kind purposes). It is not yet certain to what
extent HMRC will take issue over whether the likes of a double-cab pickup should be reconsidered being equally suited to the carriage
of
passengers as it is for loads and so you should not look to sell
MIDDLETON OPEN GARDENS Saturday + Sunday 1st + 2nd June
19 very different gardens + Wheelbarrow gardens Katie’s Garden Plant Centre stall 11.00am - 5.00pm
Adults £5 • Post Code IP17 3NN
www.middletoncumfordleywebsite.zohosites.com/
www.opengardens.co.uk
Fundraiser for Church + St. Elizabeth Hospice Contact: Irene Ralph 01728 648622 •
Ireneralph333@gmail.com
News from Framlingham and Saxmundham Cats Protection
any existing vehicles purely on the basis of this latest decision. However, if you are looking at investing in your next van or pickup,
consideration should
be given as to what it is most suited to or whether there is a duality of ability. Of course, a definitive
list from HMRC would be extremely useful but that is unlikely soon.
to happen anytime For further information
on any of the above points or to discuss your tax affairs generally, please do not hesitate to contact Robin Beadle at Ensors Chartered Accountants, Saxmundham 603005.
on 01728
This article seeks to address general business and financial issues and due care has been taken in its preparation. Ensors cannot accept responsibility for loss incurred by any person, company or entity as a result of acting, or failing to act, on any material in this publication. Specialist advice should always be sought in relation to your particular circumstances.
THE calls are now flooding in about feral colonies of cats with kittens. The sooner we can get the adults neutered and the kittens (if young enough) into care the better, but as usual, we have to juggle to make room for them all. If the colonies are cared for, the adults (both male and female) can be returned after neutering. If it is not a managed colony, it poses more difficulties as we then have to find suitable places for them to go. We have to hope that there are farms, smallholdings, stables etc which are looking for
feline rodent controllers
who can give them a safe place to live. Of course, the problem does not only arise with feral colonies; there are still many cases of domestic cats who have not been neutered
and owners often
find they cannot care for them when they become pregnant. We continue to promote the benefits of neutering both males and females, and offer free
benefits or low incomes who cannot
vouchers for those on afford
to have their
feline companions neutered. Dates for your diary: Please come along to see and support us at these events: June 23rd - Woodbridge Regatta; June 22nd- 23rd Heveningham Hall Country Fair. Cat advice: Is your cat microchipped? National
June is Microchipping
Month which is a campaign that encourages and promotes responsible pet ownership through microchipping as the preferred method of permanent identification. Cats can be chipped from nine weeks and the procedure is simple and doesn't cause harm to your pet. You can get your cat microchipped by a vet, or by a
trained and insured member of an animal welfare organisation The chip is a very small
device, no larger than a grain of rice which is injected under the cat's skin, between the shoulder blades and your cat won't even be aware of its presence.
The procedure is
painless and the chip holds a unique number which links to an owner's address on the database. Microchipping is the most effective way to identify a lost pet, and by keeping your details up to date, you'll increase the likelihood of a happy reunion if your cat goes wandering. Unfortunately, we find that a lot of microchips we scan do not have up to date details which makes it very difficult for us to reunite stray cats. Please take the time to check that your cat's microchip details are correct and up to date,
especially moved or changed
if you have your
telephone details, as it could help us or vets to reunite you with your lost feline. Another benefit of a microchip is that it is also possible to buy cat flaps which can be programmed to recognise your cat's chip; a great way to stop those unwanted feline visitors. Looking for a home: This gorgeous little
lady is
Tuppence. She is about nine months old but has already had quite a traumatic start to her life. Despite this she is a delightful,
friendly girl and
is looking for a quiet home with someone to return her affection. If you would like to offer Tuppence the home she needs, call us soon to find out more about her. See our website: framandsax.
cats.org.uk or telephone 01728 723499 for more information
Matt Giddings
Plasterer and General Builder Over 30 years experience
For a quote please call
07541 364842
A S FIBREGLASS ROOFING Do you have a felt roof which needs replacing?
Did you know this can be replaced with a fibreglass option with a 25 year guarantee.
WE SPECIALISE IN ALL TYPES OF FLAT ROOFS, BOX GUTTERS, BAY WINDOWS, PONDS.
Call Tony for more details and a free no obligation quote.
01986 875839 / 07920461139 FULLY INSURED • 20 YEARS EXPERIENCE HARWICH G.M.T. – Aldeburgh minus 1hr 3 mins (Heights are for Harwich expressed in metres)
TIDE TABLES June 2019
about adopting cats in our care; event dates; neutering; cat- care leaflets; how to become a volunteer fundraiser or fosterer and other ways you can support us. Also find us on Twitter, Facebook, Instagram and YouTube.
099514
701352
905847
060337
015446
019969
060371 047986 047986
0326549
1216198
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12
