HMRC have published the new RTI data fields to facilitate the payrolling of the benefits included in Phase 1 from April 2027. ICB highlights those that will apply to van and van fuel benefit and highlights issues that will need to be considered at the start of the tax year rather than the end.
ICB has highlighted that Phase 1 of payrolling taxable expenses and benefits will commence in April 2027 and require new RTI data fields. Phase 1 will mandate the following benefits that will have to be processed through the payroll:
- Company cars and fuel;
- Company vans and fuel; and
- Private medical (health and dental etc)
In addition, this will require the real-time calculation and payment of Class 1A NICs on all benefits that are payrolled, regardless of whether these are mandated or in Phase 1.
HMRC have published the RTI data fields for 2027/28 and ICB highlights the van and van fuel benefit ones and, possibly, considerations at this stage:
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Data item
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Description
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Value to be included
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Comment
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277
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Cash Equivalent of all Vans in Pay Period
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The per-pay-period taxable value
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The taxable value of the van benefit in the current pay period. Unless a pool van, van benefit applies when it is available to the employee for private use that is not ‘insignificant’. Which means this fact needs to ascertained at the start of the tax year rather than the end
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278
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Cash Equivalent of all Vans year to date
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The year-to-date accumulation of the above field
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E.g. month 1 + month 2 + month 3 etc
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279
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Cash Equivalent of all Fuel for all Vans in Pay Period
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The per-pay-period taxable value
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The taxable value of the van fuel benefit in the current pay period. Unless a pool van, van fuel benefit also applies when it is available to the employee for private use that is not ‘insignificant’. Which also means this fact needs to ascertained at the start of the tax year rather than the end
|
|
280
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Cash Equivalent of all Fuel for all Vans year to date
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The year-to-date accumulation of the above field
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E.g. month 1 + month 2 + month 3 etc
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For Bookkeepers
Note that van, van fuel and medical benefits are all declared as if there is only one occurrence in a tax year. So, for example, one van is available and one level of medical benefit has been provided. Where there are multiple occurrences, e.g. more than one van or more than one level of medical benefit, HMRC expect the FPS to reflect all occurrences which may require some sort of averaging.
With van and van fuel benefit specifically, there is only a charge when, over the course of a tax year, the van has been used for:
- Unrestricted private use; or
- Private use that is not insignificant
Therefore, you need to ascertain or assume these facts at the start of the tax year rather than the end. Plus, employers also need to consider the making good rules which allow an employee to make contributions towards the cost of private use. This can reduce the van and van fuel benefit and, in some instances, take the benefit value to nil.
Possibly, employers may want to explicitly state when vans are provided that either:
- Private use is restricted, in which can the van and van fuel benefit charge will not apply; or
- Private use is unrestricted, in which case the van and van fuel benefit will apply