Taxation

Unlike a company car a company van is only taxed if it is used for private purposes excluding travelling to and from work. Even then, a few trips a couple of times a year, say to a rubbish tip will be regarded as insignificant and will not be regarded as private use.

It is best to ensure that any private usage you are planning to make in your company van is not going to adversely affect the amount of tax you pay. Check the HMRC website, www.hmrc.gov.uk/vans for more information.

Should you be taxed for private usage, the breakdown is as follows

Tax amount included in tax code: £3000

Tax rate = 20%: £660

The tax maybe reduced if the vehicle is shared with another employee or if you do not have the van for the whole tax year. It may also be reduced if you pay your employee a fee for using the vehicle privately.

Fuel tax will be applied if your employer lets you have free or subsidised fuel for private usage.

Tax amount included in tax code: £500

Tax rate = 22%: £110