Britain’s 290,000 van drivers and fleet managers are advised to act now to avoid the Government’s potential 600% tax hike for van drivers, scheduled to come into effect from next year.
In April 2007, the benefit-in-kind tax charge on company vans will soar from £500 to £3,500 – that is unless it can be proved that the van is only used for business not personal use.
The scale charge for unrestricted private use will increase to £3,000 and if an employer provides fuel for unrestricted private use, an additional fuel charge of £500 will apply. The onus falls on employers to provide proof of use, using the foretrack fleet management system and its range of reports it is possible to provide evidence of when, where and how a vehicle has been used.
Gary Matson, Channel Manager at foretrack explains: “the ability to prove when and how a vehicle has been used is going to be essential for calculating tax liability, a business with the power of the foretrack online vehicle tracking system at their disposal may be able to save a lot of people, a lot of money.”
The foretrack online system provides 24/7 activity tracking reports, including highly detailed information that can identify for example; every time a driver’s engine is switched on or off, the exact route taken to complete a journey, or if an allocated area is entered or exited at certain times of the day.