Can a business van be used for personal use?
Many businesses need vans as part of their operations, and business van leasing is a great way to access efficient commercial transport. But for employees and employers, it’s not always clear whether business lease vans can be used for personal journeys.
We’ve put together this helpful guide to consider what van drivers should know about personal usage, and any implications of driving a business vehicle outside of working hours.
What is a van lease?
Van leasing refers to the lease/rental of a commercial vehicle, typically over two, three, or four years. Businesses looking to source a new van choose their ideal mileage, initial rental, and lease term before choosing between our tailored van lease deals.
Choosing a van lease can be a valuable asset for many businesses, providing employees with reliable and safe commercial transport. During a van lease, businesses must pay a fixed monthly rental for the duration of their agreement. This removes the commitment of ownership, with business owners typically handing back their lease van at the end of their contract, although other options are available.
Can my business lease van be used for personal use?
Van drivers can legally use business vans for personal journeys as long as the tax authority is notified and paid accordingly. If a lease van is used for business purposes only, it will be considered a tax-deductible expense. Personal use can be defined as anything from the school run to domestic shopping trips after work or weekend days out. However, if you’re unsure about any tax implications, speak to your tax adviser or accountant.
What are the implications of driving a van on a business lease for personal use?
Benefit-in-kind (BIK) tax applies to private usage of a business vehicle. In this case, using a business lease van for regular personal trips will come with BIK tax implications. This is because personal use of the van is seen as a ‘benefit’ to the employee. If the van is used solely for business journeys or by more than one person as a pool vehicle, BIK tax is not applicable.
Will the insurance be affected if I use a business lease van for personal use?
You might wonder how insurance works when it comes to a lease van, especially if there is varied business and personal usage. Most van insurance policies cover drivers for all purposes, with fully comprehensive cover to protect against possible damage. However, it is worth considering that some insurance providers won’t cover personal usage under certain circumstances. It’s always best to check your policy and the exact terms of your cover.
Why should I lease a van for my business with Synergy?
Here at Synergy, we can help source the best van leasing deals for your business. You can choose from a range of manufacturers and body styles, from medium vans and pick-ups to crew vans and all-electric models.
Whether you are looking to add to your existing fleet of business vans or you are investing in a van lease for the first time, leasing with Synergy is a great option for any growing business. We offer transparent pricing, free UK mainland delivery and our Best Price Guarantee. If you’re interested in leasing a van with Synergy, get in touch with our team, who will be more than happy to help.
