Company van tax/fuel BIK
Discussion
I've been offered a new role that will involve driving around various sites within the business. With this, I'll be getting a company van, provided with fuel card and the vehicle will be taken home every day.
I've checked up on the BIK for personal use and fuel BIK - this works out at just under £80 a month.
Are there any other bits I've overlooked?
Will it affect my pension?
For those with vans that can use it for personal stuff, do you have to pay for the fuel used during this usage? How does it work?
New to the whole BIK thing.
TIA.
I've checked up on the BIK for personal use and fuel BIK - this works out at just under £80 a month.
Are there any other bits I've overlooked?
Will it affect my pension?
For those with vans that can use it for personal stuff, do you have to pay for the fuel used during this usage? How does it work?
New to the whole BIK thing.
TIA.
Should not affect anything else. Tax cost depends on what rate you are.
If you are being taxed on fuel benefits you should have private fuel use also. My old contract had a 'reasonable private mileage' in it. If you have to repay cost of your private fuel then obvs you should not be paying for the benefit.
There is no real catch and it's far more employee-friendly than company car tax.
If you are being taxed on fuel benefits you should have private fuel use also. My old contract had a 'reasonable private mileage' in it. If you have to repay cost of your private fuel then obvs you should not be paying for the benefit.
There is no real catch and it's far more employee-friendly than company car tax.
You mentioned you checked on the BIK for private use which is great. Does your employer allow the van to be used for personal use?
A company I worked for issued vans to field agents which they used to visit properties, they took the van home at night also. We didn't insure the vans for anything other than business use and any use outside of normal business was prohibited. Worth checking if you haven't already.
A company I worked for issued vans to field agents which they used to visit properties, they took the van home at night also. We didn't insure the vans for anything other than business use and any use outside of normal business was prohibited. Worth checking if you haven't already.
Edited by Sy1441 on Wednesday 8th February 11:06
chrismoose91 said:
Thanks Sy.
I did check with them first as I mentioned I'll be taking my daughter to nursery in mornings and wanted to be covered. And the odd trip to Wickes for building materials. They're happy with it and insured sufficiently!
Excellent, sounds a simple thing but someone using one of our vans of an evening to take his dog somewhere of an evening was involved in a crash which was put as being his fault and he was classed as driving uninsured. We were very explicit about what acceptable use was and not only did he end up with a criminal conviction for driving without insurance he also got sacked.I did check with them first as I mentioned I'll be taking my daughter to nursery in mornings and wanted to be covered. And the odd trip to Wickes for building materials. They're happy with it and insured sufficiently!
Sy1441 said:
chrismoose91 said:
Thanks Sy.
I did check with them first as I mentioned I'll be taking my daughter to nursery in mornings and wanted to be covered. And the odd trip to Wickes for building materials. They're happy with it and insured sufficiently!
Excellent, sounds a simple thing but someone using one of our vans of an evening to take his dog somewhere of an evening was involved in a crash which was put as being his fault and he was classed as driving uninsured. We were very explicit about what acceptable use was and not only did he end up with a criminal conviction for driving without insurance he also got sacked.I did check with them first as I mentioned I'll be taking my daughter to nursery in mornings and wanted to be covered. And the odd trip to Wickes for building materials. They're happy with it and insured sufficiently!
CheesecakeRunner said:
If personal use really will be minimal, run the numbers as to how much the personal fuel BIK will cost against actually just paying for the fuel you use. You might find you need to do a fair amount of personal mileage (which does include some types of commute) before the fuel card BIK is worth it.
The FBIK accounts for around £11 of the monthly tax. Our guys sign a form to say they will not use the van for personal use as it has an impact on their BIK and our VAT / capital allowances. The vans are insured for personal use, they might pick up some shopping on the way home or drop their kids at school on the way out to the first job of the day but HMRC describe it as a small detour on route to work.
Years ago at a previous company HMRC investigated our van usage and it cost a few of the team a lot of money as they were found to be using the van as a car a lot of the time.
Years ago at a previous company HMRC investigated our van usage and it cost a few of the team a lot of money as they were found to be using the van as a car a lot of the time.
If you opt out you pay nothing, no fuel no tax
HMRC state you’re aloud the occasional personal journey such as going to the tip or buying some shopping on the way home, so if you’re not going to use it much just opt out.
If you do stay opted in, you pay flat rate tax and then it differs company by company, mine charge per mile.
HMRC state you’re aloud the occasional personal journey such as going to the tip or buying some shopping on the way home, so if you’re not going to use it much just opt out.
If you do stay opted in, you pay flat rate tax and then it differs company by company, mine charge per mile.
Nickbrapp said:
If you opt out you pay nothing, no fuel no tax
HMRC state you’re aloud the occasional personal journey such as going to the tip or buying some shopping on the way home, so if you’re not going to use it much just opt out.
If you do stay opted in, you pay flat rate tax and then it differs company by company, mine charge per mile.
If you have opted in and are paying the BIK why would the co be charging you anything?HMRC state you’re aloud the occasional personal journey such as going to the tip or buying some shopping on the way home, so if you’re not going to use it much just opt out.
If you do stay opted in, you pay flat rate tax and then it differs company by company, mine charge per mile.
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