Van benefit charge

[Lee RG]

Hi

We have an employee who drives a company van but has declared not for private use.

However a couple of months ago he recorded 7 miles in the month for private which we left as a one off an incidental.
This month he recorded 92 for the month but still hasn't declared using for private use.

What do I do in this instance, I can't see how 92 miles can be incidental, if he doesn't do it again do I just deduct the private mileage but don't record so he gets hit with the van benefit charge?

Thanks

 

[JEREMY HAWKE]

Take the van off him as he may not even be insured out of working time and this will be a bigger concern than company car benefit.
Keeping the van and doing private mileage is also running up admin work for you and this can not be tolerated

 

[MyAccountantOnline]

Hi

We have an employee who drives a company van but has declared not for private use.

However a couple of months ago he recorded 7 miles in the month for private which we left as a one off an incidental.
This month he recorded 92 for the month but still hasn't declared using for private use.

What do I do in this instance, I can't see how 92 miles can be incidental, if he doesn't do it again do I just deduct the private mileage but don't record so he gets hit with the van benefit charge?

Thanks

I think you need to consider what the 92 miles was for, was it a one-off journey, over how many days was it done, is this very much an exception to normal usage etc.?

The difficulty you have is that HMRC dont define 'insignificant' however they do give some guidance and examples in the Employment Income Manual for their internal use here which may help.

 

[Lee RG]

Thanks - yes I am just waiting on some clarification from the employee so will go from there.

 

[Lee RG]

Turns out it was for moving house and was a one off thing, looking at the manual link can't see how this would classed as significant.

In turns of the private mileage deduction, presumably I still go ahead and deduct this at the advisory rate or as this is of insignificant value would this be down to the company discretion?