Van insurance: Tax rates soar
Category: Van InsuranceVan insurance customers have been steadily paying more tax for their vehicles over the last two years, according to an industry expert.
Accountancy group UHY Hacker Young has found that in the last two years the tax paid by van drivers, who use their vehicle for personal use, has quadrupled from £10 million to £40million.
Roy Maugham, tax partner at UHY Hacker Young, said the hikes will have a huge impact on van insurance users and drivers as well as adverse effects on small businesses struggling to cope throughout the recent turbulent economic climate.
"Vans are an essential tool for many small traders and this tax hike has come at a time when other costs such as fuel have also risen sharply," he said.
Mr Maugham added that small traders often economise on transport costs by using their business vans extensively for private use, so this tax rise has hit them hard.
Earlier this month, Swinton Commercial found that 67 per cent of van insurance users are saving cash to purchase a van before the jump to 20 per cent VAT on January 4th 2011.
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