This Policy concerns employees who are provided with a Company vehicle as part of their role of employment, and how the HMRC assign them for tax purposes.
Employees who use their Company vehicle for significant private use will incur a Benefit in Kind which is taxed by HMRC, as well as personal mileage charges from the Company.
Employees who do not use their Company vehicle for significant private use, have the option to opt out. Opting out means that the Company vehicle is only used for business use and as such, this does not give rise to a Benefit in Kind.
Examples of significant use are:
Regularly taking the van to the local supermarket
Using the van for annual holidays
Using the van outside of work for social activities
Examples of insignificant use are:
Taking an old mattress to the tip a couple of times a year.
Regularly making a slight detour to purchase a newspaper at a local newsagent on the way to work.
Calling in at the dentist on the way home from work