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Company Van Tax Calculator
Work out the benefit in kind on a company van for 2026/27, including van fuel, the nil charge on electric vans and the employer National Insurance the company pays on top.
Based on the 2026/27 figures of £4,170 for the van benefit charge and £798 for van fuel. Scottish taxpayers have different income tax bands, so the tax figure will differ.
Sole Traders Do Not Pay This at All
Worth clearing up first, because it is the single most common confusion. Benefit in kind on a van applies to employees and to directors of limited companies. If you are a sole trader, there is no benefit in kind on your van, because you and the business are the same legal person and you cannot provide a benefit to yourself.
Instead you claim the van as a business cost. Capital allowances on the purchase, or the actual running costs, with a private use adjustment if you also use it personally. Different rules, different paperwork, and no charge like the one this calculator works out.
If you run through a limited company and the company owns the van, the figures below are yours.
Commuting in a Van Does Not Trigger the Charge
This is the fact that saves trade directors the most money and is the least well known. The van benefit charge only applies where there is private use beyond what HMRC calls insignificant.
Ordinary commuting between home and work is specifically allowed in a van without triggering the charge, which is not the case with a company car. So is stopping for a newspaper on the way, which HMRC gives as an example of insignificant private use.
What does trigger it is using the van for the weekly shop, taking it on holiday, or letting a family member use it. If the van goes home with you and comes back to work, and does nothing else, there is generally no benefit to report. Keep a note of your policy and stick to it, because the burden of showing the use was insignificant sits with you.
The 2026/27 Figures
- Van benefit charge, £4,170. A flat amount regardless of the value, age or emissions of the van, provided it is not fully electric.
- Van fuel benefit charge, £798. Applies only where the employer pays for fuel used privately. Provide the van but not private fuel and this does not apply.
- Fully electric vans, nil. The van benefit charge is zero for zero emission vans, and there is no fuel benefit on electricity.
- Employer Class 1A National Insurance, 15%. Payable by the company on the total benefit, due by 22 July after the tax year ends.
Unlike company cars, van benefit is not scaled by list price or CO2 bands. A ten year old Transit and a brand new one carry exactly the same charge, which is why keeping an older van in a company is rarely as efficient as people assume.
What Counts as a Van
For benefit in kind purposes a van is a goods vehicle with a design weight not exceeding 3,500kg. Anything heavier falls outside the benefit rules entirely.
The grey area is the double cab pickup, and it moved recently. From April 2025 most double cab pickups with a payload of one tonne or more are treated as cars rather than vans for benefit in kind, capital allowances and some deductions, which is a considerably more expensive treatment. Transitional rules protect vehicles bought before that change for a limited period.
If you are choosing between a panel van and a double cab pickup, check the current position before you sign anything. The tax difference between the two is now large enough to outweigh most of the practical reasons for preferring one.
Reducing or Removing the Charge
- Restrict private use to commuting only and record that in writing as a company policy.
- Do not have the company pay for private fuel. The fuel benefit is poor value unless private mileage is very high.
- Consider a fully electric van, where both charges fall to nil.
- Make a payment to the company for private use. Contributions reduce the benefit pound for pound, and enough of them can remove it.
- If the van is genuinely a pool vehicle available to several employees and not taken home, it may qualify as a pooled van with no benefit at all, though the conditions are strict.
Frequently Asked Questions
How much is company van tax in 2026/27?
The van benefit charge is £4,170 and the van fuel benefit charge is £798. A basic rate taxpayer with both pays 20% of £4,968, which is around £994 a year. A higher rate taxpayer pays roughly £1,987. Fully electric vans carry a nil charge.
Do I pay tax on a company van if I only use it for work?
No. The charge only applies where there is significant private use. Ordinary commuting between home and work is expressly permitted in a van without triggering it, unlike with a company car, as is insignificant private use such as stopping for a paper on the way in.
Do sole traders pay benefit in kind on a van?
No. Benefit in kind applies to employees and company directors. A sole trader claims the van through capital allowances or actual running costs instead, with an adjustment for any private use. If you trade through a limited company that owns the van, the benefit in kind rules do apply to you.
Is there benefit in kind on an electric van?
No. The van benefit charge for a fully electric, zero emission van is nil, and there is no fuel benefit charge on electricity provided for it. That makes an electric van one of the more efficient ways for a limited company trade to provide a vehicle.
Is a double cab pickup taxed as a van?
Not any more, in most cases. From April 2025 most double cab pickups with a payload of one tonne or more are treated as cars for benefit in kind, which is significantly more expensive than van treatment. Transitional rules apply to vehicles acquired before the change, so check the current position before buying.
What is the employer National Insurance on a company van?
The company pays Class 1A National Insurance at the secondary rate of 15% on the total taxable benefit, so on a van plus fuel benefit of £4,968 that is around £745. It is due by 22 July following the end of the tax year, and it is reported on form P11D.
Uses the 2026/27 van benefit charge of £4,170 and van fuel benefit charge of £798, with employer Class 1A National Insurance at the 15% secondary rate. Scottish income tax bands differ from those shown. General guidance for UK trade businesses rather than advice for your circumstances.
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