It is important for a business to decide if a vehicle is a van or car. This has implications for the business (National Insurance contributions (NICs) and VAT input tax claims) and the employee (amount of tax applied on the benefit of using the vehicle). Usually, just looking at the vehicle will determine if a vehicle is a van or a car. There can, however, be difficulties with vehicles such as vans with a second row of seating and various land rover defender type vehicles. This issue “taxes” the minds of even the largest businesses. For example, Coca Cola has recently had an appeal heard by the First Tier Tax Tribunal on this issue. John Davison investigates.