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Employees who are provided with a van for private use pay tax on the
benefit of the use of the van. If an employee is also provided with fuel for
private journeys, then he pays tax on the fuel scale charge, currently £500.
As the legislation is currently drafted, if the employee is reimbursed the
cost of private fuel, then this potentially could be taxed on the employee,
in addition to the van fuel scale charge. Legislation will be introduced in
the Finance Bill to ensure that there is no potential double charge.
Our view
This change simply corrects an inconsistency in the legislation. |
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