Van & fuel benefits

Van & fuel benefits

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Clients have been providing free fuel for private & business use of vans for several employees.

During 2008/09, the company has ceased making free fuel available for private use for 3 of the employees. For these employees, they still have their vans but are now restricted to business use only (or at least, private use is now considered insignificant).

From my reading of the guidance and legislation, it appears that the fuel benefit of £500 can be reduced proportionately, but the main van benefit of £3,000 cannot be time apportioned and a full benefit will apply for the year (with no benefit for 2009/10 onwards)

Is that correct or have I missed something?
Peter Cane

Replies (3)

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By Peter Cane
18th May 2009 09:56

Thanks very much for coming back to me on this, Rebecca.

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Rebecca Benneyworth profile image
By Rebecca Benneyworth
17th May 2009 12:36

Confirming
Hi Peter
Yes, I too have just read the legislation, guidance and HMRC manuals on this, and yes, you are correct. The Fuel benefit can be time apportioned if free fuel for private motoring is withdrawn during the tax year - the legislation works in the same way as the corresponding charge for cars. The apportionment does not apply if the fuel is reinstated part way through the tax year.

There is no time apportionment for the van benefit unless the van is unavailable for private use during the year, rather than its use being restricted for part of the year, so full van benefit applies and part fuel benefit.

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By Peter Cane
11th May 2009 09:28

Just wondered if...
... anyone could comment?

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