Van benefit and fuel benefit charges 2025-26 confirmed

The 2025-26 flat rate van benefit charge, flat rate van fuel benefit charge and car fuel benefit multiplier have been confirmed. 

As announced in the Autumn Budget 2024, the 2025-26 flat rate van benefit charge, flat rate van fuel benefit charge and car fuel benefit multiplier will increase in line with the Consumer Price Index (CPI). 

Statutory Instrument 2024/1349 sets out the rates that will apply from 6 April 2025: 

• The Car fuel benefit multiplier increases from £27,800 to £28,200.
• The flat rate Van fuel benefit increases from £757 to £769.
• The flat rate Van benefit, for vans emitting CO₂ increases from £3,960 to £4,020 

Reminder: Changes to double cab pick-ups

From 1 April 2025 for Corporation Tax (6 April 2025 for Income Tax.), Double cab pick-up vehicles with a payload of one tonne or more will no longer be treated as goods vehicles but will instead be cars for BIK purposes.

• Classification of double cab pickups will need to be determined by assessing the vehicle as a whole at the point that it is made available to determine whether the vehicle construction has a primary suitability. See Double Cab Hic-Ups
• As a result, from April 2025 most double cab pickups are expected to be classified as cars when calculating the benefit charge. 

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.

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?

Double Cab Hic-Ups
It was announced at Autumn Budget 2024 that the question as to whether a double cab pick-up is a car or a van will not be decided purely on the basis of weight. This policy will apply from 6 April 2025.

External link

Statutory Instrument 2024 No. 1349 The Van Benefit and Car and Van Fuel Benefit Order 2024