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

Full answer

**What is the van fuel benefit charge?** If your employer provides a company van and also pays for fuel used for private journeys, HMRC applies a fixed "van fuel benefit charge." You are taxed on this amount as a benefit in kind, in addition to the van benefit charge itself. **2025/26 and 2026/27 figures** - Van fuel benefit charge 2025/26: £757 - Van fuel benefit charge 2026/27: approximately £790 (estimated; confirm with HMRC before filing) Note: These figures are confirmed in the Spring Budget/Autumn Statement each year. Always verify on HMRC's official rates and allowances page. **Van benefit charge (the van itself)** In addition to the fuel benefit, there is a separate van benefit charge for private use of the van: - 2025/26: £4,020 - 2026/27: approximately £4,180 (estimated) Zero-emission vans: £0 van benefit charge in 2025/26 (transitional relief). **How is the tax calculated?** The fuel benefit charge is added to your income and taxed at your marginal rate. **Example: David, basic-rate taxpayer** David's employer pays for all his van fuel, including private use. For 2026/27: - Van fuel benefit: ~£790 - Income tax at 20%: £790 × 20% = **£158/year extra tax** (approx. £13/month) - NI is not charged on benefit in kind (Class 1A NI paid by employer, not employee) **Example: Emma, higher-rate taxpayer** - Van fuel benefit: ~£790 × 40% = **£316/year extra tax** **Is it worth it?** If you only occasionally use the van for private journeys, it may be cheaper to reimburse your employer for private fuel at HMRC's advisory rates rather than incurring the full benefit charge. This requires accurate mileage records. **Reporting** Employers report the van and fuel benefit on form P11D for each employee by 6 July after the tax year end.

More answers

• What is a P11D(b) form and what is the deadline for employers?
• What is the electric vehicle benefit-in-kind rate for 2026/27?