As an employer, if you let an employee borrow a heavy goods vehicle (HGV) for private use it doesn’t count as a taxable expense or benefit – as long as the vehicle is mostly used for work purposes.
- you don’t have to report it to HMRC
- you don’t deduct or pay tax or National Insurance on it
Salary sacrifice arrangements
If you let an employee borrow an HGV as part of a salary sacrifice arrangement it won’t be exempt. You’ll need to report on form P11D whichever amount is higher:
- the salary given up
- the annual value of the use of the HGV - this includes rent, hire charges and any other related expenses
These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change.
The following guide contains more detailed information: