If the vehicle you provide to your employee is a car, the taxable benefit is higher. If it’s a van, the taxable benefit is lower. But what if it’s a multi-purpose vehicle? Or modified for use in your business?
If income tax is a consideration when choosing a company vehicle, it could be worth your while to choose a company van rather than a car. This applies to vehicles for company directors, who are also treated as company employees. A recent tax case highlights the differences in how cars and vans are defined for tax purposes.