COMPANY van drivers could soon be hit by a huge increase in income tax.

Businessman Stuart Wilson, of Vesper Drive, Acomb, is warning everyone who drives a van to check out their own situation - as he or she could soon be paying tax on £3,500, compared to £500 previously.

From April this year, the taxable benefit for employees who have use of their company van for private journeys outside work will go up to £3,000 a year. For someone paying the basic rate of income tax this will mean a total tax bill of £660.

If subsidised or free fuel is provided with the van there may be a further taxable benefit of £500, although the charges will differ for drivers who only have use of the van for a limited time or who share it with someone else.

Mr Wilson said: "The Government has decided if you take your company van home then you should be taxed on it.

"Van drivers are already taxed at the rate of £500, but the new figure is six times higher, and will now be £3,000, and could even be £3,500."

Exemptions will only apply for those who make insignificant private journeys. An example given by Her Majesty's Revenue and Customs is of someone making a trip to a rubbish tip once or twice a year.

In addition, unlike previously, commuting between home and work will not be classed as a private journey.