A recent tribunal decision has brought the issue of vehicle classification back on HMRC’s agenda as confusion reigns over what is classified as a car and what is a van.
The tribunal, which saw Coca-Cola challenging HMRC over whether the Volkswagen Transporter Kombi and Vauxhall Vivaro are vans or cars, ruled that the Kombis were cars while the Vivaro was classed as a van due to the significant cargo space available in the middle section. Both vehicles have two rows of seats and a payload of more than one tonne.
HMRC was of the view that the vehicles were both cars and therefore company car tax should be paid. Coca-Cola argued that they are vans.
The tribunal decision could impact on other double cab pickups which are currently classed as vans for benefit purposes if they have a payload of one tonne or more.
The BVRLA is awaiting feedback from HMRC as to whether they will be updating their guidance in this area following the decision.
