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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Van benefit from 2005/06: treatment of shared vans

Section 157 ITEPA 2003

The treatment of shared vans changed completely from 2005/06. It has been made similar (but, because of the differences between the two charges, not identical) to the treatment of shared cars, EIM25200.

Step 1 - take the full annual charge for the van

See EIM22790.

Step 2 - reduction for unavailability

Reduce the charge at Step 1 if the normal van is unavailable, EIM22820.

See EIM22850 where there is a replacement van.

Step 3 - reduction for sharing

Reduce the benefit charge calculated at Step 2 to reflect sharing by other employees (including by members of their family or household) on a just and reasonable basis.

In making the reduction, note that:

  • sharing by all employees is included in the calculation, even if those employees are not themselves chargeable to van benefit because for 2015/16 and earlier they are in excluded employment
  • sharing by a person who is not an employee but is a member of an employee’s family or household is attributed to the employee
  • but if two members of the same family or household, one of whom is in excluded employment, are employed by the same employer and share a van, availability to the employee in excluded employment is disregarded when calculating the benefit charge for other members of that family or household
  • it is unlikely to be just and reasonable to reduce an employee’s benefit charge where another employee has insignificant private use (EIM22745) for which either no charge or a nil charge is incurred. This is because such use will, by definition, have had an insignificant (“too small or unimportant to be worth consideration”) effect on the first employee’s ability to use the van for private purposes.

Step 4 - reduction for payments for private use (where applicable)

The figure after Step 3 can be further reduced for payments for private use, EIM22840.


There is an example at EIM22874.