Expenses and benefits: company vans and fuel
Work out the value
Vans used for private journeys
You’ll need to report a standard value of £3,600 to HM Revenue and Customs (HMRC). This can be reduced if:
- your employee cannot use the van for 30 days in a row
- your employee pays you to privately use the van
- other employees use the van - divide £3,600 by the number of employees
Van fuel for private journeys
You’ll need to report a standard value of £688 to HMRC. This can be reduced if:
- the employee cannot use the van for 30 days in a row
- your employee pays you back for all their private fuel
- you stopped providing fuel during the tax year
Zero emission vans
You need to report the zero emission van on the P11D at 0% of £3,600 which is £0.
Calculating your reductions
Most payroll software packages will work the reductions out for you.
You can also use HMRC:
Salary sacrifice arrangements
If the cost of vans and fuel is less than the amount of salary given up, report the salary amount instead.
These rules do not apply to arrangements made before 6 April 2017 - check when the rules will change.