Is the Company Vans Subjected to BIK?

Is the Company Vans Subjected to BIK?

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Hi 

I have a client who wants to move their company vehicles from the business premises to their residential address.  They wish to make the driveway  big enough to fit the 6 Company Vans.  The reason behind it is that the company address is too far from where they live.  They wish for the employees to pick the vehicles from their home and then return it back to them once they had finished.

My first instinct is telling me that this will be subjected to BIK, however if there are any other options please let me know.

Kind Regards

Replies (15)

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By Yossarian
15th Nov 2023 10:09

Unless they make significant private use of the vans then I don't see why there would be a taxable BIK.

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim22745

Simply having a company van/vans available for potential private use doesn't lead to a BIK in the way that it would for a company car.

Thanks (2)
Replying to Yossarian:
RLI
By lionofludesch
15th Nov 2023 11:56

Yossarian wrote:

Unless they make significant private use of the vans then I don't see why there would be a taxable BIK.

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim22745

Simply having a company van/vans available for potential private use doesn't lead to a BIK in the way that it would for a company car.

Yes, the van benefit charge was relaxed some ten years ago. Maybe more. Ages ago, anyway.

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Replying to lionofludesch:
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By Yossarian
15th Nov 2023 14:02

lionofludesch wrote:

Yossarian wrote:

Unless they make significant private use of the vans then I don't see why there would be a taxable BIK.

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim22745

Simply having a company van/vans available for potential private use doesn't lead to a BIK in the way that it would for a company car.

Yes, the van benefit charge was relaxed some ten years ago. Maybe more. Ages ago, anyway.

Certainly 15 years plus, as circa 2008 I used to have the unenviable task of sending out dozens of employee benefit questionnaires to clients, and completing dozens of corresponding P11Ds for the firm I worked for at the time. The 'insignificant private use' rule was in place then, but was a fairly recent change at that point I think.

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By zebaa
15th Nov 2023 10:32

To park vans like that there are, of course, planning regulations...

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Replying to zebaa:
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By David Ex
15th Nov 2023 10:40

zebaa wrote:

To park vans like that there are, of course, planning regulations...

Did occur to me that the neighbours will be thrilled.

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Replying to David Ex:
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By Yossarian
15th Nov 2023 10:54

Yes, six vans parked there overnight and quite possibly six employee's cars parked there during the day too whilst they're out in the company vans!

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Replying to zebaa:
Danny Kent
By Viciuno
15th Nov 2023 14:11

Do you need planning to park work vehicles on private property? OP hasn't said anything about doing work on the driveway.

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Replying to Viciuno:
RLI
By lionofludesch
15th Nov 2023 14:33

Viciuno wrote:

Do you need planning to park work vehicles on private property? OP hasn't said anything about doing work on the driveway.

I think you're mistaken.

" They wish to make the driveway big enough to fit the 6 Company Vans."

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Replying to Viciuno:
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By zebaa
15th Nov 2023 22:49

For six vans and / or cars parked on a regular basis, yes you do. In effect it is a change of use, from domestic to commercial. It gets more difficult if they are large vans too.

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paddle steamer
By DJKL
15th Nov 2023 14:57

You certainly need PP to create an area to be used as a carpark in Edinburgh , we recently bought a small builders yard in Edinburgh capable of parking 10 cars, Council are not mindful to grant any PP re car parking per our recent enquiries via our consultant(cars are public enemy number one up here)

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Replying to DJKL:
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By David Ex
15th Nov 2023 16:23

DJKL wrote:

cars are public enemy number one up here

Thought that was the English? ;)

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Replying to DJKL:
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By David Ex
15th Nov 2023 16:23

Dooplicate

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Replying to David Ex:
RLI
By lionofludesch
15th Nov 2023 16:35

David Ex wrote:

DJKL wrote:

cars are public enemy number one up here

Thought that was the English? ;)

Plenty of English accents in Edinburgh.

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By Tax Dragon
16th Nov 2023 06:16

"The reason behind it is that the company address is too far from where they live."

.oO Nevermind where the employees live...

What happens at the business premises?

Not that that's relevant, just curious that's all. Because it sounds like your client is conjuring up a business reason for his company to pay for home 'improvements'.

Doesn't matter if there is a business reason - the cost of such work is employment income.

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