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Tax Calculators

Vans and commercial vehicles

There is no assessable benefit for private use of commercial vehicles of more than 3.5 tonnes gross weight provided that the use is not mainly private.

There is no assessable benefit for private use of vans where an employee has to take his van home and:  

  • the van is provided to the employee mainly for travel in connection with the employer's business;
  • the van is provided on terms which prohibit private use by the employee and his family other than for ordinary commuting and for occasional insignificant personal trips:
  • the employee and his family do not use the vehicle other than for business travel or ordinary commuting.

Ordinary commuting is defined for most employees as the journey that the employee make most days between their home and their permanent workplace. Travel to a temporary workplace is business travel.

A van is a vehicle of construction primarily designed for the conveyance of goods or burden  and includes a double cab pickup that has a payload of more than 1 tonne and other commercial vehicles under 3.5 tonnes gross weight.

Where the use of vehicles are not covered by the above exclusions an assessable benefit will be raised as follows:

Van Benefit

Chargeable benefits

2017/18

2016/17

Van only

£3,230

£3,170

Fuel

£610

£598

zero emissions van (20%)

£646

£634

Income tax will be payable of £646 for basic rate taxpayer for 2017/18.  A further £122 will be charged if fuel for private use is provided.

Class 1A National Insurance will be payable at 13.8% of the benefit.

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