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Morning.
What is the normal usage policy with regards to company issued vans.
If company required you to take the van home (as its required for your job), dose the company usually expect you to cover fuel cost (home-to place of work).
Further to that, is it the norm that no non company passenger allowed in van, so picking child up from school on way home is generally not allowed?
Thanks, and have a great weekend!!
IME company pays for fuel. The only exception would be if you wanted to borrow it for personal use (if allowed). If they want you to take it somewhere (including taking it home) then its their cost. As for passengers, I've never heard of it being an issue but I suppose there could be an insurance thing. Would be down to company policy but no passengers would not be usual.
From a tax point of view, there is no cost to commute in the company van but the company can charge mileage.
Doing the school run will count as private use and assuming you're a normal tax rate payer, will cost after tax around £50 a month plus a tenner for fuel IIRC.
It used to be way cheaper before the emergence of flashy crew cab pickups used as a tax dodge.
Having a work van isn't much of a perk these days, especially if it has a tracker.
What is is allowed by your company is between them and you. Personally, expecting you to pay and store the vehicle is a bit tight in my opinion
It's quite common for non-work passengers to be uninsured, so the school run isn't a good idea on that front. It also counts as private use, so you will be liable for BIK taxation on the vehicle.
Home to place of work in a company van, should be FOC with no fuel or tax implications, unless they specify that you leave it at the office / depot / yard and that it is only insured for business use, not including normal commuting - but that's a rare occurrence and nothing I've personally come across.
thank you, very helpful so far.
Has it got a tracker? If it's one of a few Van's I'd suggest it probably has. Be wary of the tax implications. Although a 65k disco commercial can also be tax free 😉
In our vans firm pays for fuel where ever you commute home to and from the job. No non work people allowed in van.
Home to regular (fixed) place of work is classed as a commute and taxable, home to irregular locations is normal company van usage and not taxable.
Passengers not on company business will NOT be insured so don’t do it. Also trips to the shops/school etc will be personal use and taxable and may not be covered on company insurance.
company pays all fuel via fuel card
(what my company drilled into us)
Ours was lax to say the least...
Most corporates though will look to avoid BIK tax so rules are generally they cover fuel via fuel card there is no 'commute' if you work in 'the field' from home everyday. No personal use whatsoever, even if it's 'on your way' so they'd expect it locked and parked at your home when you're not working.
If you work from a central location and just get to take the van home with you to commute the rules are different.
You may also find that your deeds say you cant park commercial vehicles on your driveway. Ours do.
Actually the norm in our place is do what you like till you get told off.
Companies that state no non work passengers due to insurance are wrong, all vehicles are insured for third party risks, carrying a passenger is classed as third party, and they must pay out, for injuries etc,but your comapny can also ban all non work related persons,because a company issued van is not a taxi and is easily abused by doing extra mileage etc.
Carrying non work related passengers, goods or pets may also get you a disciplinary warning, or even instant dismisal,for not obeying the rules.
Also check if van is insured on MIB, a mate drove a company van for a few months till his boss sold it, and told him he had saved a bit on insurance.
Oh and where you park it may well upset the neighbours if liveried van, parked a works van outside my dads house for 30 mins one day, got back to work later and boss asks me why i was off the route, for 31 mins,it apears a neighbour had run my boss up and reported my van.
Explained to my boss my dad was ill so dropped into see him for half an hour probaly, he just said some of your dads neighbours need to get a life, and just park round the corner next time.
Used to work in an office of a construction contractor and any of the guys who were asked to take the cans home, which was all the time, never paid for fuel themselves. Not permitted to use them for personal use, strictly speaking, but was never an issue and we willingly turned a blind eye as long as they weren't taking the piss.
As per other comments, if you are not paying tax for personal use, you cannot use it for anything other than commuting to a non-fixed place of work. And I would expect that normally your employer will have a guidance to this effect.
I am sure that especially in smaller business, private use occurs and a blind eye is turned, but if you are caught/have a crash/get a parking ticket 100 miles from home on a Sunday, you could be up for warnings/disciplinary etc. (as demonstrated by airvent!)
With vans normally being tracked now and having a job I don't want to lose, I will never use my van for private use, even going off-route in work time needs a good justification in my eyes (I left a valuable tool at X, running equipment out to Y) to cover yourself.
Somebody I knew (cough), once drove 200 miles off area to "drop off spares" in Devon and came back with a wood burning stove..........
ahh the good old days.
When I had a work pickup (part of a government agency) they paid for fuel for commuting from home to the depot. All the vans were tracked though and no personal use was allowed, even picking up people on your route home etc. as apparently the passenger wouldn't be insured, not sure how true that was though. They very much kept on top of checking the tracker though and one guy came very close to losing his job for nipping to the tip on a weekend.