Answers · UK 2025/26

What is the van fuel benefit charge for 2026/27?

The van fuel benefit charge for 2026/27 is a flat rate of £757. This applies when an employer provides fuel for private journeys in a company van. A basic-rate taxpayer pays £151.40 in additional income tax; a higher-rate taxpayer pays £302.80. If no private fuel is provided, or the employee reimburses all private fuel costs, the charge does not apply.

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

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The van fuel benefit charge is an additional benefit in kind (BIK) on top of the standard van BIK, applying specifically to private fuel provided by the employer. **2026/27 figures** - Van fuel benefit charge: **£757** - Standard van BIK (private use of the van): **£3,960** - Total BIK if both apply: £4,717 **Employee tax cost** The fuel benefit is added to taxable income and taxed at the marginal rate: - Basic-rate taxpayer (20%): £757 x 20% = **£151.40/year** (£12.62/month) - Higher-rate taxpayer (40%): £757 x 40% = **£302.80/year** (£25.23/month) **Employer Class 1A NI** The employer also pays Class 1A NI on the fuel benefit: £757 x 13.8% = **£104.47/year** **When does the charge NOT apply?** - The van is zero-emission (electric) -- both the van BIK and fuel benefit are £0 - The employee makes **no private use** of the van (other than incidental private use) - The employee **reimburses** the employer for all fuel used for private journeys before the end of the tax year - There is no private fuel provided at all **Partial reimbursement does not help** Unlike the car fuel benefit charge, partial reimbursement of private fuel costs does not reduce the van fuel benefit charge. Either the employee fully reimburses private fuel costs (nil charge) or the full £757 charge applies. **Is it worth it?** For a higher-rate taxpayer, the fuel benefit costs £302.80/year in tax. If private fuel cost would exceed this, accepting the benefit may be worthwhile. But many employees find it more tax-efficient to pay for private fuel themselves and avoid the charge entirely. **Reporting** The van BIK and fuel benefit are reported on form P11D or through payrolling. From April 2026 most employers must payroll benefits rather than report via P11D.