In Payne & Ors v HMRC [2020] EWCA Civ 889, the Court of Appeal found that the VW Kombis and Vauxhall Vivaro were cars and not vans for the purpose of assessing employee car benefits.

There are special rules to value and tax the employment benefit of a Company Car or Company Van if provided by an employer.

For Benefit In Kind purposes, a van is:

Coca-Cola provided a VW Kombi 1, a Kombi 2 and a Vauxhall Vivaro for its technicians.

The FTT concluded, and on appeal by HMRC the Upper Tribunal (UT) agreed, that:

HMRC appealed the decision on the Vivaro and the taxpayers appealed regarding the VW Kombis.

The Court of Appeal found that both types of vehicle were cars.


Company Cars
Company car tax: How do you work out car benefit? How do you work out car fuel benefit? Are there savings for low emissions vehicles? How do you reduce car benefit? Cars and the tax tribunals and Top Tax Tips.

Vans and Commercial vehicles
What is the benefit in kind charge if you drive a company van? What is van fuel benefit? What is the tax on zero-emissions vans? A guide for subscribers.

Car or Van for VAT
What is a car for VAT? What is a van for VAT? What VAT can be recovered on a car that is bought? Leased? What about fuel? Or mileage reimbursements? 

External links

Payne & Ors v HMRC [2020] EWCA Civ 889