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.

This is a freeview 'At a glance' guide to Van Benefit Charges.

At a glance

There is a tax charge on the private use of an employer's van. The tax cost is calculated as the employee's rate of tax multiplied by the flat rate benefit charge for the year in question.












Van benefit











Van fuel benefit












Zero-emission vans

The van benefit charge exemption for zero-emission vans made a U-turn between April 2015 and April 2021.

From 6 April 2015, a reduction in the Van Benefit Charge (VBC) applies for zero-emission vans.

The VBC for zero-emission vans is a percentage of the full charge 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 Nil*
2022-23 Nil
2023-24 Nil
2024-25 Nil

Finance Act 2021 provides for a nil VBC on zero-emission vans for 2021-22 onwards. 

For example:

The van benefit charge(VBC) for vehicles that have CO2 emissions is £3,960 in 2023-24.

The VBC for a zero-emission van for that year will be £nil.

Useful guides on this topic 

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 is the Benefit In Kind charge if you drive a company van? What is van fuel benefit? What is the tax on zero-emissions vans.

Cars & Vans: 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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