Van fuel benefit
The van fuel benefit charge only applies from 2005/06. There was no separate charge in earlier years.
What is van fuel benefit?
Van fuel benefit is a charge to tax on an employee for whom
- fuel is provided for private use in a van
- for which that employee is chargeable to van benefit where the restricted private use condition is not met.
Like car fuel benefit, it does so by treating the employee as though their earnings for tax were higher by a notional sum (the `cash equivalent' of the benefit). It applies in addition to the van benefit charge.
There are two main aspects to consider in respect of the van fuel benefit charge.
These are:
- are the conditions present for a van fuel benefit charge to apply)?
- if so, what is the cash equivalent of that benefit (or van fuel benefit charge)?
The employer's obligations
The employer has, for all practical purposes, no obligations until 2007/08 because the cash equivalent is nil until then. From 2007/08, the employer must:
- work out the amount of the taxable benefit of the van fuel and report it to the HMRC on form P11D after the end of the tax year
- pay Class 1A NICs on the taxable benefit of the van fuel (see NIM16175 for more information about Class 1A NICs)
- account to the HMRC for the tax which the employee has to pay on the taxable benefit of the van fuel.
Working sheet
The working sheet on calculating van benefit included with the P11D
series of forms (P11D working
sheet 3) (PDF 111K) will also cover van fuel benefit from 2007/08.
No draft is currently available.
| Home | Previous | Next | Top | Menu |
