Tax Implications

Due to their employment, there is now a tax charge where a van is made available to a director or an employee earning £8,500 a year or more, or to a member of their family or household, and the van is actually used privately (a 'company van'; until 2004/05, a van which is available for private use, whether or not any actual use is made of it).

From 2007/08, there is a further tax charge if free or subsidised fuel is provided for private use in a company van.

Reference: HM Revenue & Customs - http://www.hmrc.gov.uk