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Van Benefit-in-Kind calculator

Compare the cost of a company van available for private use against an electric equivalent. Uses the official HMRC 2026/27 rates: £4,170 van benefit charge for combustion vans, £0 for zero-emission.

Your fleet

Annual tax saving for the fleet

£2,294

£2,294 per driver, every year

Diesel / petrol van

£4,170

benefit charge per driver

Driver income tax (40%)£1,668
Employer NI (15%)£626
Per driver / year£2,294

Electric van

£0

zero-rated benefit charge

Driver income tax£0
Employer NI£0
Per driver / year£0

The 2026/27 standard van benefit charge is £4,170, taxed at the driver's marginal income tax rate. Zero-emission vans are £0, as they have been since 6 April 2021.

If the employer also pays for private fuel (typical diesel only - rare for EV because no taxable fuel benefit applies), an additional £798 fuel benefit charge stacks on top in 2026/27.

Employer Class 1A National Insurance is charged at 15% (from April 2025) on the same benefit value. The whole-cost comparison above includes both.

This calculator covers vans only. Electric cars use a separate BiK regime (4% in 2026/27, rising over time). If your vehicle is classified as a car for HMRC purposes (e.g. some passenger MPVs), the car rate applies.

When does this apply?

The van benefit charge applies any year a company van is made available to an employee for private use (anything beyond ordinary commuting). Pool vans used only for business, kept at work overnight, and not assigned to a single driver are exempt entirely - no charge regardless of fuel type.

The grants and incentives explainer covers how this stacks with the Plug-in Van Grant, capital allowances and ULEZ exemptions.