Do I pay tax on a van I take home at night?

The short answer

The van benefit charge applies where a company van is available for an employee's or director's private use. Ordinary commuting in a van is treated differently from private use in a car, and insignificant private use does not trigger the charge.

What counts as insignificant is a question of degree. Taking the van home so you can start at a site in the morning, and stopping for a paper on the way, is the standard example of use that does not create a charge. Using it for the weekly shop, the school run or a weekend away is not.

Where this bites

The charge only arises through a company. A sole trader adjusts for private use in the capital allowances and running-cost claims; there is no benefit in kind because there is no employer and employee. A director of their own limited company is an employee, and the charge can apply.

How to keep it out of charge

• Write down the rule for the vehicle — what it may and may not be used for — and hold it.
• If there is no private use, say so and mean it. An unenforced policy is not a defence.
• Where there is real private use, work out whether the charge is cheaper than the alternatives before assuming it is a problem. For a van it is often modest.
• Remember the fuel benefit is a separate charge with its own answer.

This question is part of Vans, tools and capital allowances, which covers the whole area.