Answers · UK 2025/26

What is the benefit in kind for a van in the UK 2026/27?

For 2026/27, the flat-rate van benefit in kind is £3,960 added to your taxable income. A separate van fuel benefit of £757 applies if your employer also pays for private fuel. Zero-emission vans have a £0 BIK value. A 20% taxpayer pays £792 extra tax per year on the standard van benefit.

Last updated: 10 June 2026Last reviewed: 10 June 2026How we verify

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When your employer provides you with a van and you use it for private purposes (including commuting), you are taxed on a benefit in kind (BIK). Unlike company cars, van BIK is calculated on a flat-rate basis rather than by CO2 emissions and list price. For 2026/27 the van benefit charge is £3,960, which is added to your taxable income for the year. This means a basic-rate (20%) taxpayer pays £792 extra Income Tax, while a higher-rate (40%) taxpayer pays £1,584 extra. National Insurance is not charged on BIK values -- only Income Tax. If your employer also pays for fuel for private journeys in the van, there is an additional van fuel benefit charge of £757 for 2026/27, adding a further £151.40 tax for a basic-rate taxpayer. Zero-emission vans -- electric vans -- have a BIK value of £0 for 2026/27, meaning no tax is payable. This is a major advantage compared to petrol or diesel vans and is designed to encourage uptake of electric commercial vehicles. The van BIK applies only if you have significant private use. There is an exemption if the van is made available for work purposes only, and any private use is genuinely incidental -- for example, stopping at a shop on the way home from a job. However, HMRC scrutinises this exemption closely, and if a van is taken home overnight it is generally considered available for private use. The van benefit must be declared through your employer via your PAYE tax code, or on your Self Assessment return if you complete one. Use a take-home pay calculator to see the net cost of a van benefit after tax.