I've long been on a mailing list from the courts where I get a heads up for interesting judgments. Some are cases of national controversy well covered by the press, most are anodyne and/or technical. One this week that I thought was of some motoring interest. An appeal from the Upper Tribunal to the Court of Appeal concerning whether certain vehicles supplied to employees for their work are vans or not. Less tax if they are.
The vehicles concerned were provided by Coca Cola UK to its service technicians. Some were VW Transporter T5 Kombis Others were Vauxhall Vivaros (a badge engineered Renault Trafic at the time).
The Kombis came as standard with seating behind the driver and side windows. The Vivaros were converted to a similar specification with seats/windows added. Steel bulkheads were fitted behind the rear seats. Both had some racking in the 'middle compartment' where rear seats were for tools and equipment. The seats in the Kombi were removable without tools, those in the Vivaro were not.
HMRC initially assessed both vehicles as (effectively) cars and issued assessments to tax for the users and NI to the employer on that basis. The employers and two employees appealed to the First-tier Tribunal which found that while the Vivaro was a good vehicle (van) the Kombi was not.
The taxpayers/company appealed the Kombi decision to the Upper Tribunal. HMRC appealed similarly on Vivaro. Both taking points of law about the relevant legisaltion. The Upper Tribunal, with some variation in reasoning, agreed the decision at first instance.
The Court of Appeal disagreed and found both vehicles to be the same for tax purposes; neither is primarily suited to the conveyance of goods.
I thought it quite interesting and suitable for discussion here.
Court of Appeal's Judgment is linked below:
www.judiciary.uk/wp-content/uploads/2020/07/HMRC-v-Payne-Ors-Approved-Judgment-002.pdf
Last edited by: Bromptonaut on Wed 22 Jul 20 at 17:02
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