if an employer provides a van for an employee?

time lord · 21-09-2011 10:45pm #1

If an employer provides a works van to their employee what is their biggest financial continual outlay in doing so after the purchase.
In peoples opinion is it better to provide a vehicle or pay them to use their own vehicle? Any opinions appreciated..

BnB · 22-09-2011 4:55pm

If you are going to purchase the Van outright, you will have to consider
Servicing
Tyres
Breakdowns
Fuel
Tax & Insurance

If it's a new van, you should be able to fairly accurately predict servicing etc. A lot of new vans will be sold with 1 or 2 year servicing deals which might make this easier again. And It will be under Guarantee to cover any major breakdowns.

If it's a second hand van - although cheaper - you might have higher and more erratic maintainence costs. Although, I wouldn't rule this out either. There is some great value out there for second hand vans.

If you lease the Van, most leases will include servicing, tyres, maintainence for a fixed monthly charge. You only have to look at Tax & Insurance and Diesel. This is the easiest option to budget against as it's constant every month, but it's probably also the most expensive.

Your employee might also have to consider benefit in kind. Although this would be small for a van compared to getting a company car.

if an employer provides a van for an employee?

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