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Can I Use My Business Van For Personal Reasons?

Vanaways
Vanaways
18th Sep 2023
Can I Use My Business Van For Personal Reasons?

If you own a business vehicle of any kind, it’s important to understand the tax rules and implications of using the vehicle for personal use. In this blog, we are going to dive into the rules and regulations regarding using a business van for personal reasons. To find out more about business cans for personal use, keep on reading!

Can I Use My Company Vehicle For Personal Use?

The short answer to this question is, yes. Technically, you can use a business van for personal reasons, however, there is a catch which is related to the tax paid on the vehicle. Personal use of a vehicle can include anything that is not related to your business, such as errands, commutes or any other kind of personal journey.

What Happens If Someone Uses A Business Vehicle For Personal Use?

If an employee, or anyone is using a company vehicle for personal use, the vehicle will become susceptible to ‘Company Van Tax’ and something called ‘Benefit In Kind’ or BIK is then paid to HMRC. Having a work van for personal use is considered a ‘benefit’ on top of your salary, which is why you must pay tax as a result.

Benefit In Kind Tax

You can find out what BIK band your vehicle sits in by checking the HMRC website to help you work out how much tax you are being charged for personal use of your business vehicle. This charge is calculated based on a few factors:

  • The value of the car
  • The CO2 emissions
  • Your own personal tax rate

The higher the value of your vehicle, or the higher the CO2 output, the higher your BIK charge will be. It’s helpful to note that you don’t have to pay the full value of BIK tax to HMRC, and the value that you pay will be based on your current tax. For example, if you currently pay 20% in tax, you will be charged 20% of the Benefit In Kind value, rather than the full amount.

If you have a diesel vehicle, you may find that your vehicle falls into a BIK band that is charged more tax, as a result of CO2 emissions.

Vanaways

Here at Vanaways, we offer a range of new, used and electric vans that could be your next purchase! From small commercial van purchase to leasing vans for business, we are sure to have the perfect vehicle for you!

To find out more about our business van leasing or vans for sale, feel free to head to our website to find out more information. Alternatively, you can contact us today to find out more about our services and how we can help you.

Vanaways Reviews

   
Mark Carter

Mark Carter

01 April 2025

"First class service, I must mention Adrian & Ash on an excellent deal & swift turn around under the short notice I had to buying a new van. Slight delay in the delivery of the van from manufacturers end but Adrian agreed to cover the cost of a hire van until my new van was delivered which allowed me to continue working. its the first time i've purchased a van without physically entering a dealership and i wouldn't hesitate to do it again."

Jackie Lee

Jackie Lee

28 March 2025

"Excellent service from start to finish. Jake Wheelock was professional, efficient and really genuinely helpful. Had my truck in less than 2 weeks. Great communication and reliable. Would highly recommend!"

Zoe Batchelor

Zoe Batchelor

17 January 2025

"Love the van, Perfect as the spec I ordered, Saving up for the next one, thank you Adrian and Team, Boyd Batchelor, Tillage Nurseries"

Rob De-Ath

Rob De-Ath

18 June 2024

"Purchased my new ford platinum and Theo brown’s help was 1st class . Quickly responding to all emails and calls answering anything I needed to know to help get my deal over the line . Thank you again Theo I be back in touch at Christmas with my next order 👍😊"

Jessica Allard

Jessica Allard

11 March 2025

"From start to finish Morgan and the team have been fantastic in sorting 2 new defenders out for us from the quote 3 weeks ago to them being delivered they have been brilliant the deal they got us was unbeatable thank you Lewis @ steve Allard and son stonemasons"

4.9 out of 5 from 445 reviews
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