Vans Vans

The rules for taxing private use of company vans (including pick-ups) were changed in 2005/6, with the result that a large number of employees were relieved of tax liability altogether. Where the non-business use is restricted to commuting to and from work-sites; and otherwise is only a small percentage of the overall use, no taxable benefit applies.

Where the van can be, and is in fact used extensively for private use which is considered as nonincidental, a flat-rate tax charge applies at ?3,000 pa. If fuel for private use is also provided, a further tax charge of ?500 pa is applied.

To ensure that tax is only paid for "substantial" private use it is necessary to demonstrate a policy level commitment to restrict this. Journey-logging and mileage records, clear policy statements acknowledged by the drivers' signatures, or even withdrawing insurance cover for everything except business and commuting can all be used to show that no tax liability applies. In some cases tracking device records can also be used as evidence if it is already fitted to the vans - but it is clear that HMRC do not require this level of detailed proof as a matter of course.

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