Legislation
Van benefit charge and fuel benefit charges for cars & vans 2026-27
Date
Effective 6 April 2026
Summary
When employees can use company vehicles privately, it counts as a Benefit in Kind (BiK) and must be taxed accordingly.
For vans, this is a fixed annual charge. For company cars, the charge is based on CO2 emissions and fuel usage. If fuel is provided for personal journeys, an additional charge applies.
These charges must be reported on P11D forms each year.
Van benefit charge 2026-27
£4,170
Fuel benefit charges 2026-27
| Vehicle type | Charge per annum |
|---|---|
| Car fuel benefit charge | £29,200 |
| Van fuel benefit charge | £798 |
Mileage allowance payments 2026-27
| Vehicle | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Privately owned cars and vans | 45p | 25p |
| Bicycle rate | 20p | 20p |
| Motorcycle rate | 24p | 24p |
| Passenger rate (each) | 5p | 5p |
Tax fact card 2026 – 2027
Download your FREE tax fact card to find out the latest changes to payroll tax & legislation from April 2026. This PDF card includes all the key payroll rates and dates that…