Expenses and benefits: private use of heavy goods vehicles
As an employer, if you let an employee borrow a heavy goods vehicle (HGV) for private use, it’s not a taxable expense or benefit if the vehicle is mostly used for work.
This means you do not:
- have to report it to HM Revenue and Customs (HMRC)
- deduct or pay tax or National Insurance on it
Salary sacrifice arrangements
If you let an employee borrow an HGV as part of a salary sacrifice arrangement it will not be exempt. You’ll need to report on form P11D whichever amount is higher:
- the salary given up
- the annual value of the use of the HGV - this includes rent, hire charges and any other related expenses
Technical guidelines
The following guide contains more detailed information: