Van Benefits Print

For 2020/21 the taxable benefit in respect of the private use of a company van is £3,490. This has been increased to £3,500 for 2021/22.

Where the van is powered wholly by electricity and does not emit any CO2, the scale charges are being increased to the standard charge over the period to 2022/23.For 2020/21 the benefit is £2,792, being 80% of the taxable benefit for a conventionally fuelled van. For 2021/22 this increases to £3,150 (90%) and for 2022/23 and subsequent years the full scale charge will apply.

Van benefits are not charged where the only private use of the van is “ordinary commuting” and the employer prohibits all other private use. The benefit is reduced on a just and reasonable basis where the van is made available to two or more employees concurrently.

A further benefit arises where fuel is made available for the private use of the van. For 2020/21 the fuel benefit is £666, and for 2021/22 the benefit has increased to £669.

If the employee pays the employer for the private use of the van, the taxable benefit is reduced by the amount reimbursed. Similarly if the employee pays for all private fuel, or reimburses the employer at the approved mileage rate, then the fuel benefit is not be charged.

A vehicle whose weight limit exceeds 3,500kg is classified as a heavier commercial vehicle, and is not regarded as a van for these purposes. No tax charge will arise from the private use of such a vehicle unless it is wholly or mainly used for private purposes.

A Double Cab Pick-up, which is primarily designed for carrying goods or burden will be accepted by HM Revenue and Customs as a van for benefit purposes where the vehicle has a payload of 1 tonne (1,000kg) or more. Generally a double cab pick-up will have the following features:

A front passenger cab that contains a second row of seats and is capable of seating about 4 passengers in addition to the driver.

4 doors capable of being opened independently, whether the rear doors are hinged at the front, or rear, and importantly

An uncovered pick-up area behind the passenger cab.

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