Answers · UK 2025/26

What is the company van benefit in kind rate for 2026/27?

The company van benefit in kind (BIK) for 2026/27 is a flat rate of £3,960 per year regardless of the van's value or emissions. A basic-rate taxpayer pays £792 tax on this benefit; a higher-rate taxpayer pays £1,584. Fully electric vans have a £0 BIK rate. A separate van fuel benefit of £757 applies if the employer provides private fuel.

Last updated: 30 June 2026Last reviewed: 30 June 2026How we verify

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Unlike company cars -- where BIK is calculated as a percentage of the vehicle's list price linked to CO2 emissions -- company vans use a single flat-rate benefit figure. **2026/27 Van BIK Figures** - Standard van BIK: **£3,960** - Van fuel benefit (private fuel provided by employer): **£757** - Zero-emission (electric) van BIK: **£0** To qualify as a van for tax purposes the vehicle must have a payload of at least one tonne and be of a construction primarily suited to the conveyance of goods. Double-cab pickups are sometimes reclassified -- HMRC issued revised guidance in 2024 bringing many double-cabs back within car BIK rules. **Employee tax cost** The BIK value is added to your taxable income and taxed at your marginal rate. - Basic-rate taxpayer (20%): £3,960 x 20% = **£792/year** (£66/month) - Higher-rate taxpayer (40%): £3,960 x 40% = **£1,584/year** (£132/month) If the employer also provides private fuel: - Basic rate: £757 x 20% = **£151/year** - Higher rate: £757 x 40% = **£303/year** **Comparison with company cars** For a car with a £30,000 list price and 30% BIK rate, the taxable benefit is £9,000 -- more than twice the van figure. For lower-emission vehicles the car BIK can be lower, but vans rarely justify personal use from a tax perspective unless genuinely required for work. **Employer Class 1A NI** The employer pays Class 1A NI at 13.8% on the van BIK: £3,960 x 13.8% = £546.48 per year. **No private use** If the van is genuinely available only for business use and any private use is merely incidental (e.g. driving home and keeping the van overnight), no BIK applies at all -- this is a significant advantage over company cars.