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HMRC internal manual

Employment Income Manual

Van benefit to 2004/05: shared and exclusive vans: example 2

This example illustrates the calculation at EIM22075 for anumber of employees who share vans (see EIM22070) where thereare also periods of exclusive use (see EIM22072) of the vans.


From 6 April 2003 X Ltd made a van first registered on 6 August 1998 available totransport employees C, D and E between home and work. Driving is shared between them andat night they take it home in rotation.

On 25 September X Ltd acquired a brand new van in addition to the old van. That day D andE travelled to work in the old van and afterwards each of them used the new van foralternate fortnights. C now had exclusive use of the old van to get from home to work andback.

On 2 January 2004 C began to share the old van for travel between home and work with a newemployee, F.

On 1 March, E left, after which the new van was available exclusively to D until 1 April,when D also left and the van was sold.

None of the employees is in lower paid employment and none of them pays anything forprivate use of the vans.

The old van (all dates are inclusive):

  • is shared by C, D and E throughout the period 6 April to 25 September (173 days)
  • is used only by C from 26 September to 1 January, a 98 day exclusive period (see EIM22072)
  • is shared by C and F from 2 January to 5 April (95 days)
  • is not a shared van for the 98 day exclusive period (see EIM22072).

The new van:

  • is shared by D and E from 25 September to 1 March (159 days; they have it alternately for periods not exceeding 30 days)
  • is used only by D from 2 March to 1 April, a 31 day exclusive period (see EIM22072)
  • is incapable of use (see EIM22095) from 6 April to 24 September (172 days) and 2 April to 5 April (4 days) because it was not owned in those periods.
  • is not a shared van for a total of 207 days (31+172+4).

Note that any apportionment is based on the number of days in the year, Sections 158(3)and 163(1) ITEPA 2003. The number of days in 2003/04 is 366 because 2004 is a leap year,so this is used as the denominator in this example. For most years, use 365.

Value of exclusive availability, see EIM22080

There was exclusive use (all dates are inclusive):

  • by C of the old van from 26 September to 1 January (98 days, deduct for 268 days)
  • by D of the new van 2 March to 1 April (31 days, deduct for 335 days).
  Value to C Value to D
Step 1 Old van: over 4 years New van: under 4 years
Step 2 Basic value (whole year basis): £350 Basic value (whole year basis): £500
Step 3 Deduct: £350 x 268/366 = £257 Deduct £500 x 335/366 = £458
  Provisional sum is £93 Provisional sum is £42
Step 4 No private use payments No private use payments
  Value of exclusive availability is £93 Value of exclusive availability is £42

Value of shared availability: normal calculation, see EIM22090

    Running total
Step 1 Vans involved: 2 - old van and new van.  
Step 2 Participating employees: C, D, E and F.  
Step 3 There are therefore 4 participating employees.  
Step 4 Old van:  
  Step 1: old van over 4 years old.  
  Step 2: basic value is £350.  
  Step 3: deduction for excluded days = 350 x 98/366 = £94.  
  Basic value of old van is £256. £256
  New van:  
  Step 1: new van less than 4 years old.  
  Step 2: basic value is £500.  
  Step 3: deduction for excluded days = 500 x 207/366 = £283.  
  Basic value of new van is £217. Add this to £256 = £473
Step 5 Reckonable amount = £473/4 = £118. £118
Step 6 Reckonable amount does not exceed £500, so provisional sum is £118
Step 7 No private use payments: value of shared availability is £118

The value of shared availability to each employee is £118 (subject to a claim for thealternative calculation on a daily basis, see EIM22097).

Total charge for each employee

Subject to a claim for the alternative calculation, the total charge for each employeeis

  Shared availability Exclusive availability Total
C: £118 £93 £211
D: £118 £42 £160
E: £118 £0 £118
F: £118 £0 £118

Effect of employee in lower paid employment

If E were in lower paid employment, the only effect would be on E’s liability, whichwould be nil. The liability of C, D and F would be unaffected because all employeesare counted when determining the number of participating employees, see EIM22092.

Effect of alternative calculation (see EIM22097)

In this example, a claim would not benefit any of the employees. However, if F had nottaken up employment until 20 March 2004, F could have made a claim to be charged on amaximum of £80 (£5 x 16 days if there was actual private use on every possible day). Aclaim by F would not affect the charges on the other participating employees.

Years from 2005/06 onwards

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