Offered a job - vehicle query

arctine

arctine

arctine

Soldato
Joined
7 Oct 2009
Posts
4,145
I've been offered a job and it stipulates this in the contract:

A Company van will be provided, of which you will have unlimited use, with the company responsible for all running expenses, and this is recorded for PAYE purposes as a taxable benefit.

I'm curious, how much can I be expected to be taxed on something like that? I already have my own car so I dunno if it's worth opting out of the personal use thing. I did have a look on google but it's confusing, especially in my current Saturday morning mental state :p

Also there is another line:
**'s sickness and accident benefit scheme for hourly paid employees applies.

There is no other mention of this or any details. I figured I'd phone up and ask but it's the first contract I've seen so I dunno if it's normal?
 
Company vans have a flat rate of Benefit in Kind, currently £3170 a year regardless of the type of van.

This means you pay £634 if you're a standard rate tax payer, or £1268 if you pay higher rate tax.

If the company pays for the fuel you use for personal mileage, that's an additional BIK of £598, so an additional £120/£240 actual cost in tax depending on your tax rate.

With a van, commuting mileage is allowed without paying the BIK for personal use. So unless you are actually going to use the van for personal use outside of traveling to and from work it's probably not worth having personal use.

If you opt out, you should make sure it states in your contract that personal use is not allowed, and any personal use of the vehicle would result in disciplinary proceedings against you. This is to ensure that HMRC are satisfied there is no personal use. If you don't do this, they could decide during a tax inspection that the van was available for personal use and hit you for the back tax. The taxable benefit arises from the vehicle being available for personal use, regardless of if you actaully use it or not.

If it's used for communiting and you keep it at home, unless you have it in writing personal use is forbidden and there is a sanction if caught they could argue it was/is available for personal use and it's difficult to counter that point.
 
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