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.

Tax charge on the private use of an employer's van. The tax cost is calculated as the employee's rate of tax times the benefit for the year in question.

Year

2020/21

2019/20

2018/19

2017/18

2016/17

2015/16

2014/15

Van benefit

£3,490

£3,430

£3,350

£3,230

£3,170

£3,150

£3,090

Van fuel benefit

£666

£655

£633

£610

£598

£594

£581

 

From 6 April 2015 to 5 April 2022 a reduction in the Vans Benefit Charge (VBC) applies for zero-emission vans.

This rate is tapered and will increase 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 onward* 100% 
2022/23  100% 

 

*It is proposed by Finance Bill 2021 to reduce the cash equivalent of the van benefit charge to £Nil for the tax year 2021/22 onwards. See Finance Act 2020 and taxes rolling tracker


Would you like to know more and pick up some Top Tax Tips? Get your motor running with our guides to:

Vans and Commercial vehicles
What are the benefit charges? When do they apply? Can you reduce them? How are you taxed on van and van fuel benefit examples? How is the employer taxed? What are the tax benefits of a low emissions van? What is meant by private use? How are lorries taxed? What do the tax tribunals have to say on van benefits?

Car or Van: for 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
Company car tax: How do you work out car benefit? How do you work out car fuel benefit? Are there savings for low emissions vehicles? How do you reduce car benefit? Cars and the tax tribunals and Top Tax Tips.

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HI there, I have a LTD company and recently purchased a 2015 VW Amarok Pick up. I contacted HMRC to inform them and they are insisting i need to complete a P46car form, is this correct?

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