Employers – Vans Provided to Employees – Records
As you are no doubt aware if a van (including a pick-up with a payload of at least 1 tonne) is provided to an employee who can use it for private journeys (for this purpose only home to work travel and vice versa is NOT treated as private), then a benefit in kind arises which must be declared on form P11D at the end of each tax year.
If private use is prohibited and there is in fact no private use (except what HMRC call insignificant – the odd trip to the tip, stopping at the paper shop on the way to work etc), then there is no benefit and nothing to declare.
However, employers need to bear in mind that it is their responsibility to ensure there has been not private use and hence there is no benefit to declare to HMRC.
Therefore, they should have some way to monitor that the vehicle is only being used for business purposes/home to work – unless vehicles are fitted with trackers this will almost certainly mean the employees having to keep full logs of mileage so that the employers can check this is business only and corresponds with the total mileage on the vehicle.
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