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Van Fuel Benefit Charge

If you claim the cost of fuel from your employer for business use only that’s not a benefit – but if you claim the cost of fuel for private use then that is a benefit, and you’ll have to pay the Van Fuel Benefit Charge.
passenger van car parked on a city alley street si 2023 11 27 05 33 33 utc
Passenger van car parked on a city alley street side with blurred walking pedestrians in autumn.

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13 May 2024

The 2023/2024 Van Fuel Benefit Charge rate is £757. As this is the benefit rate:

20% taxpayers have to pay £151.40 – around £12.62 per month. 40% taxpayers have to pay £302.0 – around £25.23 per month

Not only is this cheaper than the fuel benefit charge for company cars, the amount can be shared between employees who use the same van.

The UK government is keen to encourage businesses to switch to electric vans has meant that they have attracted zero VED and BIK rates. Up until 1 April 2025, the E-Van road tax and BiK is zero.

This will all change with the start of the new tax year in 2025, when the government has elected to bring electric vans into line with petrol and diesels, meaning you will pay the same.

There’s also no Van Fuel Benefit Charge on electric vans as, to quote the government’s official documentation, ‘electricity is not a fuel’. This is not set to change as a result of the 2022 Autumn Statement, as the government has simply said it will rise in line with the consumer price index.

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