Payroll Hub · Simple employer guide
Do your company vans need to go through payroll?
Work out what to check for company vans, private use and employer-paid fuel.
Best for: Business owners and people working in payroll, finance or HR
- Plain-English guide
- Reviewed 11 August 2026
In simple terms
Status: HMRC interim guidanceVans and employer-paid private fuel are included in the first April 2027 group, but not every company van automatically creates a taxable benefit. Check how each van is actually used, what private use is allowed and whether the employer pays for private fuel. Keep the van and fuel information separate because one can change without the other.
When does private use matter?
A van used for work and ordinary commuting can be treated differently from one available for wider private use. Record the rules given to the employee and what happens in practice before deciding that a taxable benefit exists.
Why is van fuel a separate record?
The employer might stop paying for private fuel while the employee keeps the van. A separate fuel record makes that change clear and prevents payroll from taxing fuel for longer than it should.
Optional detail
Official guidance behind this answer
The short answers above are enough to get started. Open these sections only if you need to check the current HMRC position or source.
What Benefits in Kind must be payrolled from 6 April 2027?
Status: HMRC interim guidanceFrom 6 April 2027, HMRC says employers will need to put company cars, car fuel, vans, van fuel and employer-provided medical benefits through payroll.
Read the full answer and official source
These are the first five benefit groups in the change. HMRC currently plans to add most other Benefits in Kind from April 2028, while loans and accommodation will continue to have separate arrangements.
Source: HM Revenue and Customs — The phased introduction of mandatory payrolling for benefits in kind
Source updated: . Workmax reviewed: .
What information will employers report through FPS?
Status: Draft HMRC technical specificationHMRC has published a draft list of benefit information that payroll software may need to send. Employers can start gathering the information, but the final list may still change.
Read the full answer and official source
The draft includes benefit values, employer Class 1A amounts and extra details for particular benefits. Company cars need the most information, including vehicle and availability details.
Source updated: . Workmax reviewed: .
Plain-English Benefits in Kind glossary
- Benefit in Kind (BiK)
- A non-cash benefit or expense provided by an employer that may create an Income Tax liability.
- Payrolling benefits
- Including a benefit's taxable value in payroll so Income Tax is collected through PAYE.
- Cash equivalent
- The statutory taxable value of a benefit, which may differ from its purchase price or cash cost.
- Class 1A NIC
- An employer National Insurance liability charged on many taxable benefits and expenses.
- P11D
- The end-of-year form traditionally used to report taxable expenses and benefits for an employee.
- FPS
- The Full Payment Submission employers send through Real Time Information when payroll is reported to HMRC.
