A taxable benefit in the form of a Van Benefit Charge (VBC) arises when an employee is provided with a company van and it is used for personal journeys.
This is a freeview 'At a glance' guide to Van Benefit Charges.
At a glance
There is a tax charge on the private use of an employer's van. The tax cost is calculated as the employee's rate of tax multiplied by the flat rate benefit charge for the year in question.
|
Year |
2025-26 |
2024-25 |
2022-23 |
2021-22 |
2020-21 |
2019-20 |
2018-19 |
2017-18 |
2016-17 |
2015-16 |
2014-15 |
|
Van benefit |
£4,020 |
£3,960 |
£3,600 |
£3,500 |
£3,490 |
£3,430 |
£3,350 |
£3,230 |
£3,170 |
£3,150 |
£3,090 |
|
Van fuel benefit |
£769 |
£757 |
£688 |
£669 |
£666 |
£655 |
£633 |
£610 |
£598 |
£594 |
£581 |
Zero-emission vans
The van benefit charge exemption for zero-emission vans made a U-turn between April 2015 and April 2021.
From 6 April 2015, a reduction in the Van Benefit Charge (VBC) applies for zero-emission vans.
The VBC for zero-emission vans is a percentage of the full charge as follows:
| Tax year | % of van benefit charge |
| 2015-16 | 20% |
| 2016-17 | 20% |
| 2017-18 | 20% |
| 2018-19 | 40% |
| 2019-20 | 60% |
| 2020-21 | 80% |
| 2021-22 | Nil* |
| 2022-23 | Nil |
| 2023-24 | Nil |
| 2024-25 | Nil |
| 2025-26 | Nil |
* Finance Act 2021 provides for a nil VBC on zero-emission vans for 2021-22 onwards.
For example:
The van benefit charge(VBC) for vehicles that have CO2 emissions is £4,020 in 2025-26.
The VBC for a zero-emission van for that year will be £nil.
Useful guides on this topic
Vans and Commercial vehicles
What is the Benefit In Kind charge if you drive a company van? What is van fuel benefit? What is the tax on zero-emissions vans?
Cars & Vans: VAT
What is a car for VAT? What is a van for VAT? What VAT can be recovered on a car that is bought? Leased? What about fuel? Or mileage reimbursements?
Company cars
What creates a company car benefit? How do you work out the car benefit? How do you work out the car fuel benefit? Are there savings for low-emission vehicles? How do you reduce the car benefit? Can you payroll a company car benefit? Is it a car or a van?