Benefit In Kind - Company Van

Van benefit in kind (BIK) arises where a van is 'made available' for private use by an employee.

However, the definition of 'private use' for company van benefits is more relaxed than for cars. No charge to BIK arises if the following conditions are met;

• The van is necessary in the performance of the duties of the employee's employment
• The employee is required to keep the van at his or her private residence when not in use
• Private use of the van is prohibited and the employee spends at least 80% of their time away from their work premises

You may also be able to avoid a charge if the vehicles meet the definition of a 'pool van'. A van can be treated as being in a van pool if the van is available to and used by more than one staff member and it is not normally kept overnight at the home of any of the employees. Any private use of the van must also be merely incidental to its business use.

The structure of your vehicles and the associated motor expenses can have significant tax implications, so please feel free to contact your local TaxAssist Accountant if you would like to discuss this further.

Date published 21 Feb 2013

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.