Van tax & BIK calculator
A company van available for private use carries a flat 2026/27 van benefit charge of £4,170, taxed at the driver's marginal rate, plus a £798 fuel benefit if the employer pays for private fuel, under gov.uk's rules on company van benefits. A fully electric van has a £0 benefit. This estimates the yearly and monthly tax.
How is a company van taxed?
A company van is taxed on a flat cash-equivalent benefit, not on its price, under gov.uk's rules on company van benefits. Every diesel or petrol van with private use carries the same fixed van benefit of £4,170 for 2026/27. Income tax is paid on that figure at the driver's own marginal rate. This is why a van is usually far cheaper to run through a business than a company car of similar value.
Two things change the number. A fully electric van has a van benefit of £0, so there is no tax on the van at all. If the employer pays for fuel burned on private journeys, a separate van fuel benefit of £798 is added on top and taxed the same way, as set out on gov.uk. Paying for private fuel personally means that part does not apply.
What would the tax be on an example salary?
On a £35,000 salary, a diesel van available for private use gives an estimated £4,170 benefit. At a marginal rate of 20.0%, that is an estimated £834 a year, roughly £70 a month. Switching to an electric van takes the van benefit to £0, so the estimated tax falls to nothing. Adding employer-paid private fuel on the diesel raises the benefit, and the estimated tax, both.
Common questions
How is a company van taxed differently from a company car?
A van uses a flat cash-equivalent benefit, not a percentage of list price. Whatever the van costs new, a van with private use carries the same fixed benefit, and you pay income tax on that at your marginal rate. A company car instead multiplies its list price by a CO2-based percentage, so an expensive car is taxed far more heavily than a van of similar value.
Do I pay tax on a van I only use for work?
No. If your private use is limited to ordinary commuting and occasional insignificant trips, there is no benefit and no tax. The benefit only applies once the van is available for wider private use, so a genuine work-only van is not taxed.
Is an electric van tax free?
The van benefit charge for a fully electric van is £0, so there is no income tax on the van itself. That is the main tax advantage of an electric company van over a diesel one, which carries the full flat benefit.
What is the van fuel benefit?
If your employer pays for fuel you use privately in the van, a separate flat fuel benefit is added on top of the van benefit, and you pay income tax on that too. If you pay for your own private fuel, or the employer only funds business mileage, there is no fuel benefit.
How is a company van taxed?
A company van with private use carries a flat cash-equivalent benefit of £4,170 for 2026/27, under gov.uk's rules on company van benefits. Income tax is paid on that figure at the driver's marginal rate, so the actual tax bill depends on whether they pay the basic, higher or additional rate. A fully electric van has a £0 benefit, and employer-paid private fuel adds a further £798 fuel benefit.
What would the tax be on an example salary?
On a £35,000 salary, a diesel van available for private use gives an estimated £4,170 benefit, taxed at an estimated 20.0% marginal rate. That works out at an estimated £834 a year, or roughly £70 a month. Switching to an electric van takes the estimated tax to nothing, since the van benefit itself is £0.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.