HMRC have confirmed the flat rate van benefit charge, flat rate van fuel benefit charge and car fuel benefit multiplier which will apply for the 2023-24 tax year. 

It was announced in the 2022 Autumn Statement that the 2023-24 car and van fuel benefit charges and van benefit charge would increase in line with the September 2022 Consumer Price Index (CPI). 

HMRC have now confirmed the rates which will apply from 6 April 2023: 

  • The Car fuel benefit multiplier increases from £25,300 to £27,800.
  • The flat rate Van fuel benefit increases from £688 to £757. 
  • The flat rate Van benefit, for vans which emit CO2, increases from £3,600 to £3,960. 

Useful guides on this topic

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.

Car fuel benefit charges
What is the car fuel benefit charge? How do you apply it?

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?

Van Benefit Charges
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.

Van Benefit Charge (VBC) Zero-emission vans
Since 6 April 2015, a reduction in the Van Benefit Charge (VBC) has applied for zero-emission vans.

Pool cars
What is a pool car? How is it taxed? When does it become a benefit? What are the rules? Is it still worth having them?

External link

Policy paper: Income Tax: van benefit charge and fuel benefit charges for cars and vans from 6 April 2023

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