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An employer can provide an employee with a van for business use. If the van is used solely for business or is a pool van, then there is no benefit. However, if the van is also used for private journeys, then there is a benefit.
Vans
HMRC determines a standard value for vans each tax year, and it’s currently £3600 for the 22/23 tax year.
This can be reduced if:
- Your employee cannot use the van for 30 days in a row.
- Your employee pays you to use the van privately.
- Other employees use the van (in this case, you can divide £3,600 by the number of employees).
Zero emissions vans have a P11D value of 0% and must be reported on the P11D as 0% of £3,600, which equals £0.
Fuel
Equal to vans, HMRC determines a standard value for the fuel each tax year, and it’s currently £688 for the 22/23 tax year.
This can be reduced if:
- The employee cannot 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.
For more information on Section G, please visit this website.
Please note – This guideline is not exhaustive, and it does not cover every eventuality. Its main focus is on the most typical scenarios that usually happen in reality. It's important to be aware of other possibilities as well. If you need more detailed information, please refer to the HMRC website. Always consult a tax advisor if you have any doubts or queries.