Do any of your employees have the benefit of the use of a van for private mileage? Do you fill in a P11D for them? Do you provide fuel for private mileage? Or do you give them access to a fuel card or account and not ask if any fuel has been used privately? Please log on to read the rest of the article.
Take care! Customs’ teams are beginning to take account of the P11Ds for vans and to query whether there has been any provision of free fuel for private mileage in the vans for which P11Ds are completed. The VAT scale charge cannot be used for vans or other commercial vehicles. It is therefore important that employees using vans for private mileage keep records of their business/or private mileage, so that an apportionment of VAT on petrol purchases can be made.
If vans are not to be used privately, it is becoming increasingly important to be able to show both the Revenue and Customs
· that the employee was given a written statement prohibiting private use
· that the employee has another vehicle available to him for private use
· that the employer takes some steps to check there is no private use, for example the employer might compare the total mileage on the vehicle with the total expected business mileage on a regular basis (say twice a year), or might install tracking devices to ascertain geographical location or might have a published policy of spot checks to see if the vehicles are parked at the employees’ homes at night or weekends.
Do you need help? Do you want to discuss the issue? Please email Liz Bridge on: Liz.Bridge@theCC.org.uk.