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HMRC internal manual

Employment Income Manual

Van benefit to 2004/05: meaning of private use and business travel

Sections 118(2) and 171(1) ITEPA 2003

Private use of a van made available to a director or employee (or to members of theirfamily or household) means any use other than business travel.

Business travel means any travelling for which the expenses would be deductible under Part5 Chapter 2 ITEPA 2003 if they were incurred by the employee. Broadly, they are travellingexpenses that involve two types of business journey:

  • journeys that employees have to make in the performance of their duties (Section 337 ITEPA 2003) and
  • journeys that employees make to or from a place they have to attend in the performance of their duties, but not journeys that are ordinary commuting or private travel (Section 338 ITEPA 2003).

Detailed guidance on the types of journey that give rise to deductible travellingexpenses can be found at EIM32350 onwards and EIM32000 onwards.

An ordinary commuting journey counts as private use. This is so even if the employee isobliged to take the van home:

  • because the employee is ‘on call’ (see Gurney v Richards (62TC287) and EIM32240), or
  • to ensure its security or that of its contents, or
  • because the employer has no facilities for keeping the van on his premises.

Years from 2005/06 onwards

Full guidance on van benefit for these years can be found using the contents page at EIM22700.