This example illustrates the calculation at EIM22075 for a number of employees who share vans (see EIM22070) where there are also periods of exclusive use (see EIM22072) of the vans.
From 6 April 2003 X Ltd made a van first registered on 6 August
1998 available to transport employees C, D and E between home and
work. Driving is shared between them and at night they take it home
in rotation.
On 25 September X Ltd acquired a brand new van in addition to
the old van. That day D and E travelled to work in the old van and
afterwards each of them used the new van for alternate fortnights.
C now had exclusive use of the old van to get from home to work and
back.
On 2 January 2004 C began to share the old van for travel
between home and work with a new employee, F.
On 1 March, E left, after which the new van was available
exclusively to D until 1 April, when D also left and the van was
sold.
None of the employees is in lower paid employment and none of
them pays anything for private use of the vans.
The old van (all dates are inclusive):
The new van:
Note that any apportionment is based on the number of days in the year, Sections 158(3) and 163(1) ITEPA 2003. The number of days in 2003/04 is 366 because 2004 is a leap year, so this is used as the denominator in this example. For most years, use 365.
There was exclusive use (all dates are inclusive):
| Value to C | Value to D | |
| Step 1 | Old van: over 4 years | New van: under 4 years |
| Step 2 | Basic value (whole year basis): £350 | Basic value (whole year basis): £500 |
| Step 3 | Deduct: £350 x 268/366 = £257 | Deduct £500 x 335/366 = £458 |
| Provisional sum is £93 | Provisional sum is £42 | |
| Step 4 | No private use payments | No private use payments |
| Value of exclusive availability is £93 | Value of exclusive availability is £42 |
| Running total | ||
| Step 1 | Vans involved: 2 - old van and new van. | |
| Step 2 | Participating employees: C, D, E and F. | |
| Step 3 | There are therefore 4 participating employees. | |
| Step 4 | Old van: | |
| Step 1: old van over 4 years old. | ||
| Step 2: basic value is £350. | ||
| Step 3: deduction for excluded days = 350 x 98/366 = £94. | ||
| Basic value of old van is £256. | £256 | |
| New van: | ||
| Step 1: new van less than 4 years old. | ||
| Step 2: basic value is £500. | ||
| Step 3: deduction for excluded days = 500 x 207/366 = £283. | ||
| Basic value of new van is £217. Add this to £256 = | £473 | |
| Step 5 | Reckonable amount = £473/4 = £118. | £118 |
| Step 6 | Reckonable amount does not exceed £500, so provisional sum is | £118 |
| Step 7 | No private use payments: value of shared availability is | £118 |
The value of shared availability to each employee is £118 (subject to a claim for the alternative calculation on a daily basis, see EIM22097).
Subject to a claim for the alternative calculation, the total charge for each employee is
|
| Shared availability | Exclusive availability | Total |
| C: | £118 | £93 | £211 |
| D: | £118 | £42 | £160 |
| E: | £118 | £0 | £118 |
| F: | £118 | £0 | £118 |
If E were in lower paid employment, the only effect would be on E's liability, which would be nil. The liability of C, D and F would be unaffected because all employees are counted when determining the number of participating employees, see EIM22092.
In this example, a claim would not benefit any of the employees. However, if F had not taken up employment until 20 March 2004, F could have made a claim to be charged on a maximum of £80 (£5 x 16 days if there was actual private use on every possible day). A claim by F would not affect the charges on the other participating employees.
Full guidance on van benefit for these years can be found using the contents page at EIM22700.
