Glossary · UK
What is Van Fuel Benefit Charge?
A fixed taxable benefit imposed when an employer provides fuel for an employee's private use of a company van, set at £757 for 2025/26.
Full Definition
The Van Fuel Benefit Charge applies when an employer provides fuel for private use (including commuting) of a company van to an employee or director. Unlike car fuel benefit (which is calculated as a percentage of the car's P11D value), the van fuel benefit is a fixed flat amount set by HMRC each tax year. For 2025/26 the van fuel benefit is £757. It is added to the employee's taxable income on top of the van benefit charge itself (£3,960 for a standard van in 2025/26). The employee pays Income Tax on both amounts at their marginal rate; the employer pays Class 1A National Insurance Contributions at 13.8% on the combined benefit value. If the employee is reimbursed for all private fuel costs (i.e. pays the employer back), or if the employer does not permit any private use, neither the van benefit nor the fuel benefit applies. Employers report van and fuel benefits on a P11D (or via payrolling of benefits) after the end of the tax year, and Class 1A NICs are paid by 19 July (22 July if paying electronically) following the tax year end. Zero-emission vans are eligible for a zero van benefit charge, but the fuel benefit still applies if fuel for private use is provided. From 2026/27, rates are expected to increase modestly in line with RPI -- final confirmed figures are published in the Budget and in HMRC's tax tables.