---
title: What’s the Tax Position on Providing Van to Self Employed Worker?
description: "**Last updated:** 16 October 2026 ## What is the tax position if you provide a van to a self-employed worker? If the worker is genuinely self-employed, there's no van benefit-in-kind charge, because the benefit rules apply only to employees and…"
url: "https://accotax.co.uk/knowledgebank/whats-the-tax-position-on-providing-van-to-self-employed-worker/"
updated: "2026-10-18"
category: TAX
tags:
  - self employed worker
---

# What’s the Tax Position on Providing Van to Self Employed Worker?

**Last updated:** 16 October 2026

## What is the tax position if you provide a van to a self-employed worker?

If the worker is genuinely self-employed, there's no van benefit-in-kind charge, because the benefit rules apply only to employees and directors. Your business can still claim capital allowances and running costs for the van as long as it's used in your trade. However, providing a van is one factor HMRC looks at when deciding employment status. If the arrangement looks like employment, the worker could be treated as an employee, and the van benefit charge (£4,170 for 2026/27) plus PAYE and National Insurance could apply.

## Status comes first

HMRC considers the whole picture:

- Control over how, when and where the work is done
- Whether the worker can send a substitute
- Who provides equipment, including vehicles
- Financial risk and the chance of profit
- Whether the worker is part of your business

Supplying a van points towards employment but isn't decisive. Use HMRC's Check Employment Status for Tax (CEST) tool and keep a record of the result.

## If the worker is self-employed

| Item | Tax treatment for you |
| --- | --- |
| Buying the van | Capital allowances (AIA 100%) |
| Fuel you pay for | Deductible business expense |
| Insurance and repairs | Deductible |
| Charging the worker for use | Income in your accounts |
| VAT on the van | Usually reclaimable if VAT registered |

If you charge the worker rent for the van, they can deduct that in their own accounts.

## In construction

Under CIS, you deduct 20% (or 30% if unregistered) from the labour element of payments. If you supply the van and fuel, the payment is still all labour, so you can't treat the van as materials to reduce the deduction.

## If the worker is an employee

A van available for private use creates a benefit charge of £4,170 a year, plus £798 if fuel is provided for private use. Commuting and insignificant private use are exempt. From April 2027, vans and van fuel are among the first benefits that must be payrolled rather than reported on a P11D.

## Example

A roofing firm lets a subcontractor use a company van for its jobs only. The subcontractor sets their own hours, works for other contractors and invoices per job. The firm claims the van's cost and running costs. No benefit charge arises. When the subcontractor starts using the van at weekends for personal moves, the firm stops the arrangement to avoid status risks.

## Common mistakes

- Assuming no tax because the worker invoices
- Letting the worker use the van privately with no agreement
- Treating van costs as materials under CIS
- Not keeping a status assessment

## Records to keep

Keep the contract, status assessment, van logs and any rental charges.

## Hiring the van to the worker

A cleaner arrangement is to hire the van to the subcontractor under a written agreement at a commercial rate. They pay for fuel and insurance, deduct the hire cost in their own accounts, and are clearly in business on their own account. You show the hire income in your accounts and charge VAT if you are registered.

## Frequently asked questions

### Can I charge the worker for the van?

Yes, at a commercial rate.

### Does insurance need to cover them?

Yes, check your policy covers named drivers.

### Is a double cab pick-up a van?

From April 2025, most are treated as cars for benefit purposes.

### Can the worker claim mileage?

Not if they don't pay for the van.

Related: [employed or self-employed](https://accotax.co.uk/knowledgebank/am-i-employed-or-self-employed-if-i-have-a-limited-company/), [CIS registration](https://accotax.co.uk/knowledgebank/do-i-need-to-register-my-consultancy-under-the-cis-scheme/) and [vehicle benefits](https://accotax.co.uk/knowledgebank/how-will-the-increase-in-vehicle-benefits-impact-workers-starting-in-april/).

## Talk to Accotax

Want this handled for you? Our team at [Accotax](https://accotax.co.uk) can help with subcontractor van tax advice. See our [small business accountants](https://accotax.co.uk/accountants-for-small-businesses/) service, or [contact us](https://accotax.co.uk/contact/) for a free, no-obligation quote.

This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 16 October 2026. It is not personal advice, so speak to an accountant about your own situation.