Vans

LCV Taxation

As an employer providing company vans and fuel to your employees, you have certain National Insurance and reporting obligations.

What’s included – This includes any van used for:

  • business journeys
  • commuting
  • private journeys
What’s exempt

You don’t have to report or pay anything to HM Revenue and Customs (HMRC) if your van is used for business journeys or as a pool van.

Business journeys and commuting

A business journey is a trip:

  • made as part of work (eg a service engineer travelling between appointments)
  • to a temporary workplace

Vans used for ‘insignificant’ private journeys are exempt, eg making a slight detour to pick up a newspaper on the way to work.

Pool vans

You won’t need to report your van if it’s all of the following:

  • available for use and used by more than 1 employee
  • available to each employee because they need it to do their job
  • not ordinarily used by 1 employee to the exclusion of others
  • not normally kept at or near employees’ homes
  • used only for business journeys – limited private use is allowed, but only if it’s incidental to a business journey, eg driving home to allow an early start the next morning
Vans used for private journeys
There’s a standard value of £3,150 that you’ll need to report. This can be reduced if:

  • your employee can’t use the van for 30 days in a row
  • your employee pays you to privately use the van
  • other employees use the van – divide £3,150 by the number of employees

Van fuel for private journeys

There’s a standard value of £594 that you’ll need to report. This can be reduced if:

  • the employee can’t use the van for 30 days in a row
  • your employee pays you back for all their private fuel
  • you stopped providing fuel during the tax year

Zero emission vans

You need to report the zero emission van on the P11D at 20% of £3,150 which is £630.

Government Website – Company Vans and Fuel – Expenses and Benefits – The Final Word