The smart way to save money on company car tax
Limited choice of other 4x4 vans available
In Denmark 4x4 car-derived vans are amongst the most popular vehicles on the road. It’s due to a weird quirk in their tax laws that allows vehicles with a certain stowage space to qualify as vans. The net result is that the Nissan Qashqai is the best selling LCV in the country.
In the UK, similar but slightly less generous tax benefits exist for commercial vehicles including these car-derived vans. The taxable benefit for the unrestricted use of company vans is £3,150 and for someone paying 20% in income tax, that equates to just £630 per year in benefit in kind charges. If the company pays for fuel usage there is a further £594 of taxable benefit, which will lead to a £118.80 per annum charge, but the total cost for running a van as a personal company vehicle is still only £748.80 per year.
Not everyone wants to run a van as their company car, but these car-derived vans are seen as a compromise, yet incredibly there is still little demand for vehicles of this type. As a result there are only a handful of models on the market that fall into the covert commercial vehicle category.
While it’s far from perfect, the SsangYong is on balance the best all round vehicle of the three and poses the best value. Had the Mitsubishi Outlander been a diesel vehicle it may have been a closer contest, but the strong 2-litre engine, smart exterior and interior appearance as well as its surprising off-road abilities makes the Korando our winner.
If you need a small van and require some occasional off-roading the Korando neatly balances economy, capacity and value. If you’re looking for a loophole to cut down your benefit in kind liability the Korando is the most car-like, and therefore liveable, 4x4 car-derived van you can get.