Rules regarding using a van for private use?

Rules regarding using a van for private use?

Hi, I am considering getting a 2nd hand Ford Kuga commercial as a company vehicle. What are the rules regarding BIK & motor tax and can this vehicle be used for personal use as well as business use? regards Seamus

Our answer:

Hi Seamus,

Well, according to Revenue, BIK is not chargeable on a van as long as: you provide your employee with the van for work purposes and they are required to bring it home afterwards; your employee is not allowed to use the van other than travelling to and from work; your employee spends at least 80 per cent of their time away from work; and the gross van weight is more than 3,500kg. If you use it for personal use, then none of that applies, and you’ll also have to register the van as a private car, which means taxing it on the old engine capacity system. If in doubt, check with your accountant.

Shane O'Donoghue

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