Van benefit calculator, 2026/27

How this is calculated

Unlike company cars, which are taxed on a CO2-based percentage of list price, vans are taxed on a single flat cash figure. For 2026/27 that figure is £4,170 for a standard van made available for private use, regardless of its purchase price or emissions.

If the company also pays for private fuel used in the van, a further flat benefit of £798 applies on top, again irrespective of actual fuel cost or mileage covered.

Both figures are added together, taxed at your marginal income tax rate, and separately subject to employer Class 1A National Insurance at 15%, payable by the company rather than deducted from your pay.

Why vans are often better value than cars

Because the charge is flat rather than value-based, a van benefit is usually far cheaper than a company car benefit on anything but the lowest-emission, lowest-value vehicles, making vans attractive for tradespeople and directors who genuinely need one for the business.

The catch is qualifying: HMRC requires the vehicle to be a van in the ordinary sense, primarily suited to the conveyance of goods, and private use beyond ordinary commuting must be insignificant unless you are willing to accept the flat benefit charge.

Zero-emission vans

Zero-emission vans have carried a nil van benefit charge in recent years, making an electric van one of the most tax-efficient vehicle choices available to a limited company, though this treatment should be checked each tax year as policy evolves.

The fuel benefit equivalent does not apply to electricity, so an electric van with company-paid charging avoids both charges entirely under current rules.

What is 'insignificant' private use of a van?

HMRC's examples include making a short detour to pick up a newspaper on the way to a business appointment, or occasionally taking the van home the night before an early job. Regular weekend or family use goes beyond this and triggers the benefit charge.

Do double-cab pickups count as vans?

It depends on payload and configuration; HMRC has tightened its approach to this in recent years, and some double-cab pickups are now treated as cars for benefit purposes, which usually produces a higher tax charge.

Is there a discount for sharing a van between employees?

If a van is genuinely shared and any private use is merely incidental to business use, no benefit charge arises at all for any of the employees who use it.

Does the van benefit reduce if I only have the van for part of the year?

Yes, the flat charge is time-apportioned for the number of days in the tax year the van was actually available for private use.