As an employer providing company vans and fuel to your employees, you have certain National Insurance and reporting obligations.
This includes any van used for:
- business journeys
- private journeys
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.
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
What to report and pay
If your van isn’t exempt, you must:
Work out the value
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.
Calculating your reductions
Most payroll software packages will work the reductions out for you.
You can also use HM Revenue and Customs’ (HMRC):
The following guides contain more detailed information:
Last updated: 8 July 2016