Company Van

[danwins]

Hi all,

Just started a new job and my car decided it was time to die, The boss said I could use the spare works van for a few weeks until I get something sorted which was good of him as I've only been there a week. Thing is, times are hard at the min so having it long term would be better for me. Obviously nothings for free so how do you think I should approach him? Offer a deduction from my wages to cover the extra wear and tear, work extra hours or something else? Any advice?

Dan

[Sixpackpert]

You’ll also get taxed for having it, or you should do if they agree and declare it. Van BIK is not massive.

As to asking him for it not sure how you approach that.

Edited by Sixpackpert on Saturday 23 September 09:08

[danwins]

Thanks for the info, not thought of tax implications.

[Burrow01]

It will be taxed as if you earned an extra £4169 a year, (assumes company pays for the fuel as well)

So it will cost you 20% of £4169 (assuming you are 20% tax payer) a year extra in tax,

The company will also pay extra National Insurance, and so its not free for your boss - something to bear in mind when you discuss it

[danwins]

Thanks for that.

If I offer to "Rent" the van from him will that alter my/his tax implications?

Just trying to find the correct way of saying "Can I have the van if I give you £X a month" that wont cause him any problems.

[xx99xx]

It would probably be easier if you got a loan and bought your own vehicle, if you're considering paying the boss £x/month with no prospect of owning it.

I don't think there is any (legitimate) way of informally having private use of a company vehicle without any tax implications.

If the vehicle is needed to do the job, then consider commuting to wherever the van is parked then using the van to do your job and returning it at the end of the day. No tax issues there as it's just for business use.

Or see if the boss would be up for introducing a salary sacrifice car scheme.

[Gigamoons]

I’d just sort a snotter if your car has died.

Lots of good suggestions in theory ie asking your boss to start a salary sacrifice scheme… but think of the reality of your situation… as an employer I’ll give you a perspective:

You’re the new guy - I’m expecting you’re going to be striving to add value.
But your car just died… I don’t know you well yet but I’m banking on you being a capable human who solves his problems on his own time and not mine.
Things are tight for you… join the club mate and I’ve just put you on the wage bill.
I’ve done you a short term favour as we’re not using the spare van currently.. I’m giving you a bit of space to sort yourself out.
Now you want it longer… which creates a hassle for me if one of the vans is off the road or I need a lad to go collect something.
Can you rent it.. and involve me pissing around with payroll and insurance etc…
Can I set up a salary sacrifice scheme… ffs the new blokes bringing me more problems than solutions…

My advice is your thought process is leading you down the path of staring into “that guy” territory that gets your card marked early as a pain in the arse.

So in the nicest way, just use auto trader and public transport to solve your own problem this weekend, it’s hardly a unique challenge nobody has faced before.

Get a cheap replacement, get to work on time, do a great job etc.

Sorry to be blunt

Edited by Gigamoons on Saturday 23 September 17:11

[danwins]

No apology needed for being blunt, I appreciate that.

You’re the new guy - I’m expecting you’re going to be striving to add value."
Very small company but in 1 week have produced more than the other 3 workers.

"But your car just died… I don’t know you well yet but I’m banking on you being a capable human who solves his problems on his own time and not mine."
I have been using public transport, 3hrs there, 3 hrs back. In a car 20 mins each way. I'm prepared to sacrifice my own time to get to work for you.

"Things are tight for you… join the club mate and I’ve just put you on the wage bill"
Yes you have, but I'm bringing in more money for you than your paying me.

"I’ve done you a short term favour as we’re not using the spare van currently.. I’m giving you a bit of space to sort yourself out."
You have, and I appreciate it.

"Now you want it longer… which creates a hassle for me if one of the vans is off the road or I need a lad to go collect something."
I'd like it, and in the unlikely event that one of the main vans AND the other spare van are off road, its your van and can have it back.

"Can you rent it.. and involve me pissing around with payroll and insurance etc…"
Then don't, its only a suggestion.

"Can I set up a salary sacrifice scheme… ffs the new blokes bringing me more problems than solutions…"
ffs think of it as a solution to a problem, happy workers are productive workers.

I get your point though, I will just see how things go over the next few weeks.

[Eric Mc]

Occasional use of a company supplied van is completely tax free i.e. there is no Benefit in Kind charge.

If you are using the van on an occasional basis, then there will be no tax arising. HMRC is a bit vague on what they mean by "occasional".

https://www.gov.uk/expenses-and-benefits-company-v...

[Sixpackpert]

I would take occasional not to mean every day to get to work and back.

[The Ferret]

Sixpackpert said:

I would take occasional not to mean every day to get to work and back.

Commuting to and from work doesn't count as private mileage in a commercial vehicle.

If your not using it for private use then there's absolutely no reason why there should be any BIK or associated personal tax on the van.

If the thought of HMRC challenging it bothers you, write a simple declaration that you sign each year to your employer stating that the van is for business purposes only (incl commuting). Belt and braces would be state in the declaration that you can substantiate your mileage, and to keep detailed mileage records, but I don't think even HMRC would expect van drivers to be doing that.

[xx99xx]

https://www.gov.uk/guidance/cars-and-vans-availabl...

This suggests commuting is private use and a charge is incurred.

[The Ferret]

xx99xx said:

https://www.gov.uk/guidance/cars-and-vans-availabl...

This suggests commuting is private use and a charge is incurred.

Depends of course on what your commute involves and whether the vehicle is needed for the performance of the role.

I've assumed its needed for the performance of the role, as most vans are. If its purely to and from an office then yes that kind of restricted commute would attract a charge. I wouldn't imagine there are too many scenarios where companies are buying vans for that purpose, but looking at the OP comments above the use could be questioned.

The employer also needs to think carefully about that. My guess is the van is needed by the business for commercial purposes (deliveries etc), which means they probably reclaimed VAT on the purchase. They therefore need to ensure the use continues to reflect that.

[Eric Mc]

Unlike with cars, with a van or other commercial vehicle, the home to work journey (the commute) will not give rise to a BIK PROVIDED the employee pays for the fuel used in the commute.