Answers · UK 2025/26
What is the company van benefit charge for 2026/27?
For 2026/27, the van benefit charge is £3,960 flat per year for unrestricted private use of a company van. If the employer also pays for private fuel in a van, an additional van fuel benefit charge of £757 applies. Electric vans are exempt from the van benefit charge for 2026/27 (£0). Both charges are taxed at the employee's marginal rate and trigger Class 1A NI (13.8%) for the employer.
Full answer
The company van benefit charge applies when an employee is provided with a company van and is allowed private use beyond ordinary commuting. Unlike company cars (where the benefit is a percentage of the list price based on CO2), vans attract a flat annual charge. 2026/27 charges: Van benefit: £3,960 per year. Van fuel benefit (where employer pays for all private fuel): £757 per year. Electric van benefit: £0 for 2026/27 (zero-emission vans continue to be exempt under current legislation). Definition of a van: the van must have a design weight not exceeding 3,500kg and be primarily suited for the conveyance of goods or burden. Double-cab pickup trucks (like Ford Ranger, Toyota Hilux) are generally classified as vans for benefit-in-kind purposes, though HMRC periodically reviews this -- check current HMRC guidance. Restricted private use: if private use is genuinely restricted to ordinary commuting (travel from home to a permanent workplace) and any other insignificant private use, no benefit charge arises. Employers need robust records to demonstrate this. Shared vans: if a van is shared among several employees and no single employee has unrestricted use, the flat charge is divided among those with unrestricted use. Calculating employee tax: a basic rate taxpayer pays 20% x £3,960 = £792/year in additional tax. A higher rate taxpayer pays 40% x £3,960 = £1,584/year. Employer Class 1A NI: 13.8% x £3,960 = £546.48/year on the van benefit alone. Report on P11D (section G) or payroll the benefit. HMRC guidance: EIM22700.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.