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Company Car Tax - Made to have Company Van for Personal Use

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  • Company Car Tax - Made to have Company Van for Personal Use

    My friend works for an employer who had given her use of a company van as she needs it for her daily job transporting and travelling to clients around the country.
    Other employees are allowed to store their vans/cars at the head office and pick them up in a morning and drop them off at night, my friend has been told there is not enough room for her to do this as well. So she has been told she must pay company car tax as it is seen as a benefit and she has personal use of the van too. The van has seats in the back so they are saying it can be a useful vehicle for her to personally use.
    She does not want to use this car for personal use. It's awkward to drive outside of the requirements of her job, very large so not easily parked when 'popping to the shops' or to visit her family who live on a narrow street, her dogs hate travelling in it compared to the boot of her car they are used to, and her and her husband already have a car each for commuting. She's just not able to make it work as her full time car, she has tried every which way possible.
    Additionally it is stickered up to the max with the company logos etc, so it's not even discreet (brilliant for work but not for personal use).
    The car tax is extortionate on the van as she's being made to have it for personal use, with no payrise to support this.
    My question is - can she refuse to have the van for personal use therfore it will become a business use vehicle only that she would leave at work?
    Can they legally make her have this as a company vehicle including personal use, aand can they say no to her leaving this van at work and picking it up and dropping it off each day instead?
    She is not ungrateful, she's the most selfless person I know and if she could see a way to make the van work as her main vehicle instead of her current car she would, she's just in need of some legal advice please?
    Thank you

  • #2
    Company van tax is different to company car tax.
    An employee can use the van to drive from home to work and back home. This is classed as business journeys and the employee is not liable for benefit in kind.
    The employee can also use the van for insignificant journeys without incurring bik
    Your friend should talk to her employer about this explaining she is not going to use the van for personal use, only possible insignificant journeys in an emergency.
    If if was not in her employment contract she cannot be forced to keep a company van at home.


    • #3
      If the van has seats, side windows and side doors HMRC are likely to class the vehicle as a car and your friend will be liable for company car bik.
      The main purpose of a van is to transport goods, not passengers.
      Do you know if your friend is paying company van or company car tax?


      • #4
        Pezza54 it's classed as a car due to the back seats and they have just recently informed her she will have to pay company car tax on the van. She doesn't want to as she will not use the van for personal use , its an expense she has not factored in and never expected to, and she'd love to keep it at the office car park to not incur the company car tax.

        Thank you for your replies, all help and advice is appreciated


        • #5
          Please see the last sentence of my first post. If keeping the company car at home is not in her employment contract, the company can't legally force her to do this.


          • #6
            Pezza54 thank you so much for your advice. Just to clarify, would this be the same even with the van being classed as a company car due to the seats etc?


            • #7
              Yes, a van with rows of seats is classed as a car by HMRC
              Your friend should check her contract of employment and if it doesn't mention keeping a company vehicle at her home overnight she should:
              First speak to her manager letting him or her know she is unhappy about this as she doesn't need the vehicle for personal use, it is causing a problem parking it overnight and the company car tax is costing her a lot of money.
              A possible solution. Is there another company near your friend's firm that has available overnight parking facility?
              If this fails she should write formally to her manager, copy to personnel.


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