Private use of company vans

Overview

If you supply your employee with a company van for private use this is a benefit in kind. Your employee must pay Pay As You Earn (PAYE), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on this benefit. 

This is calculated by using the cash equivalent of the company van.

Note

For the purposes of this section of the website, a ‘company van’ refers to all vans provided to employees from their employer.

A van is a vehicle which:

  • is made solely or mainly for the transport of goods
  • has a roofed area behind the driver’s seat
  • has no side windows or seating fitted in the roofed area.

If a vehicle does not meet all the criteria above the vehicle may be a car for tax purposes. See Private use of company cars for further information.

This section is only applicable where ownership of the van does not transfer to the employee. If you transfer the van to your employee, general BIK rules shall apply. For more information see the valuation of benefits section.

If you pay an allowance to an employee to allow them to purchase a van, this will be taxable salary and this section shall not apply.

Next: Calculating the cash equivalent of company vans