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Small firms and van drivers will be caught off guard by tax increase, survey suggests

SMALL firms and self-employed van drivers are to be hit by a £15 million-a-year tax raid by Chancellor Jeremy Hunt — and most of them do not know about it.

A rise in tax paid by firms and one-person van operators on their vehicles was part of Mr Hunt’s Autumn Statement in which he sought to pass on some of the financial damage caused by the disastrous mini-budget inflicted on Britain’s economy by his predecessor Kwasi Kwarteng.

Basic rate taxpayers currently pay £720 for “benefit in kind” use of company vans for personal journeys.

The charge will increase by 10 per cent — £72 — on April 26 next year.

Higher rate taxpayers will pay an extra £144 a year.

But a survey by trade magazine Auto Trader found that out of 1,000 van drivers surveyed 62 per cent were not aware of the increase, which will raise £15 million a year for the Treasury.

The survey also found that van drivers have already paid £500 in increased running costs since fuel prices soared this year.

An Auto Trader spokesman said: “Our findings show that the new fresh tax raid coming their way in April will be a complete shock to most van drivers, adding to the heavy burden that they’ve already faced this year.

“It might even be the straw that breaks the camel’s back for many of them.”

Mr Hunt also said that an exemption from vehicle excise duty on zero-emission vehicles will be abolished in April 2025.

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