A van benefit in kind arises where a van is ‘made available’ for private use by an employee. Private use includes commuting and you should also be aware that they do not necessarily have to make use of the van- it can just be at their disposal.
However, the definition of ‘private use’ for company van benefits is more relaxed than for cars, and you may be able to avoid a charge altogether if private use is ‘insignificant’. Insignificant is defined as:
- insignificant in quantity in the tax year as a whole (that is, a few days at most)
- insignificant in quality (for example, a week’s exclusive private use is clearly not insignificant)
- intermittent and irregular
- very much the exception in terms of the pattern of use of that van by that employee (or their family or household) in that tax year.
You may also be able to avoid a charge if the vehicles meet the definition of a ‘pool car’.
The structure of your vehicles and the associated motor expenses can have significant tax implications, so please feel free to contact your local TaxAssist Accountant if you would like to discuss this further.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.