Call us 0800 0523 555

Contact Us

*COVID-19 update: Many of our shops and offices are now open for face to face meetings with strict social distancing measures in place. We also offer telephone and video consultations for all new clients in order to discuss your needs. Find the latest COVID-19 information available for your business.

Private Use of A Company Van

I work for a building contractor and have been offered the use of a company van outside of work hours. Are there any tax implications I need to be aware of if I use the vehicle privately?

All employees will only pay tax on a company van made available to them for private use only if they actually use it for private journeys other than commuting. Before April 2005, employees still had a benefit in kind charge applicable if they received any form of private use of the company van, including home to work travel.

The taxable benefit in kind for unrestricted private use increased to £3,000 from April 2007, and will mean that a basic rate taxpayer who has private use of a van will pay tax of £600 per year. Private use is classified as using the van to do the supermarket shopping or using the van for social activities outside of work. If you also receive free or subsidised fuel, and further benefit in kind of £500 will be due, resulting in a further tax liability of £100 for a basic rate tax.

However, employees who have to take the company van home, but are allowed no further private use, or have insignificant private use, will not be subject to a benefit in kind charge. Examples of insignificant use include an employee who stops at a newsagent on the way to work or calls at the dentist on the way home.

If this does apply, ensure you keep mileage records relating to the use of your van, ask your employer to amend your contract of employment, and ensure you sign an agreement about the van use only being allowed for home to work travel.

Call us today to make an appointment with your local office

Consultations available by telephone or video

0800 0523 555

Contact Us