Jeremy Hunt’s quiet £100million tax raid on van drivers will come as a ‘full shock’ to many tradespeople, a survey has revealed.
Greater than three out of 5 tradespeople mentioned they have been unaware of the looming rise within the Van Profit Cost unveiled by the Chancellor final month.
Beneath Mr Hunt’s plans, fundamental fee taxpayers at the moment paying £720 as a profit in form to make use of firm vans for private journeys pays a further 10 per cent – or £72 a yr – from 6 April subsequent yr.
Greater fee taxpayers face an additional annual cost of £144.
However a survey of greater than 1,000 van drivers by on-line automobile market Auto Dealer revealed 62 per cent of respondents have been unaware of the tax rise.
The findings led to contemporary warnings in regards to the impression of the tax hike on van drivers, at a time when many have already confronted big will increase in operating prices.
In keeping with Treasury forecasts, rising the Van Profit Cost in step with the CPI measure of inflation – at the moment close to 40-year highs – will elevate an additional £15 million a yr.
That will probably be value greater than £100 million by the top of the last decade.
Greater than three out of 5 tradespeople mentioned they have been unaware of the looming rise within the Van Profit Cost introduced by Jeremy Hunt final month
The survey findings led to contemporary warnings in regards to the impression of the tax hike on van drivers, at a time when many have already confronted big will increase in operating prices
The Auto Dealer survey additionally indicated that greater than 1 / 4 (27%) of van drivers have been hit by at the very least £500 in further operating prices this yr.
Russia’s invasion of Ukraine has seen hovering gasoline prices this yr, whereas van buy prices have additionally elevated – significantly for brand new vans amid provide issues.
The typical value of used vans on Auto Dealer’s market has risen by £1,300, or 7 per cent, to £19,429 since November 2021.
The typical value of recent vans has risen by £4,300, or 14 per cent, to £33,821.
An Auto Dealer spokesman mentioned: ‘Our findings present that the brand new contemporary tax raid coming their means in April will probably be a whole shock to most van drivers, including to the heavy burden that they’ve already confronted this yr.
‘It would even be the straw that breaks the camel’s again for a lot of of them.’
Tory MP Greg Smith additionally warned in regards to the impression of tax hikes for tradespeople.
‘Van drivers are the spine of our financial system – be it trades like builders and plumbers or supply drivers and a lot extra,’ he instructed The Solar.
‘If we would like the financial system to develop, the reply can by no means be to clobber them with an increasing number of taxes.’
A Treasury spokesperson mentioned: ‘Drivers who solely use their vans for enterprise should not topic to the Van Profit Cost as a result of it solely applies to personal use – and people who do pay it is not going to see a real-terms enhance subsequent yr.
‘As well as, this yr’s £2.4billion gasoline obligation minimize continues to save lots of van drivers round £200 every.’
