How is the taxable benefit calculated on company vans?

The rules on company vans are slightly different to those on company cars. A benefit only arises if you use the van for private journeys other than journeys between home and work. So for tax purposes, travel between home and work is ignored.

In these circumstances, your employer will need to demonstrate to HM Revenue and Customs that you have no tax to pay.

They may therefore require you to keep your own record of mileage, date and purpose of journey. This may be included in your employment contract, or you may have to sign a separate agreement about van use.

If you have to pay tax because your private use includes more than journeys between home and work, a standard benefit charge applies. For 2017/18, this is £3,230.

If your employer also provides free fuel for your private mileage, there is a flat rate charge that applies to vans which for 2017/18 is £610 a year (assuming it is a year, of course).

The flat rate is reduced by 80% to £646 for vans which cannot produce CO2 engine emissions under any circumstances when driven, but there is of course no fuel benefit available for such vans.

Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from your union, a source on our free help page or an independent financial advisor before taking any action.