What is the present income tax position regarding an employee provided with a DCP?
• Assuming the DCP’s original construction has not been altered and the payload is 1 tonne or
more, there is a fixed van benefit charge of £3,960 and a fixed van fuel charge of £757.
What is HMRC now stating?
• From 1st July 2024 HMRC will be changing their interpretation of the legislation regarding the
benefit in kind position as regards DCPs.
• Under their revised interpretation HMRC believe that “most if not all” DCPs will be defined as a
car for income tax purposes.
• This will heighten the benefit in kind charge considerably.
Example of the potential income tax impact on a Scottish taxpayer
• A DCP with a list price of £40,000 and CO2 emissions of 160km/g.
PLEASE CLICK HERE TO SEE OLD AND NEW CHANGES
If you wish to discuss HMRC’s change in stance re DCPS or other issues
please do contact us.