Company van tax calculator

Can I use this calculator in an AI assistant?

Yes. Taxley runs a free Model Context Protocol (MCP) server, so you can add these calculators to Claude, ChatGPT or your own code and ask for a figure in plain English. The assistant gets the same answer as this page, with a link back to the result. There's no key and no sign-up.

How is a company van taxed?

If a company van is available for private use, the driver has a flat benefit in kind of £4,170 for 2026/27 (£4,020 for 2025/26), whatever the van cost. They pay Income Tax on it at their own rate, and the company pays 15% Class 1A National Insurance. Both charges are reduced for months the van isn't available.

If the company also pays for private fuel, a flat van fuel benefit of £798 (£769 for 2025/26) is added, unless the driver repays all of it. HMRC: Benefit charge on company vans · GOV.UK: Van and fuel benefit charges for 2026 to 2027.

When is there no van benefit charge?

There is no van benefit for a zero-emission van, such as a fully electric one. There is also no charge for any van whose private use is restricted to commuting between home and work and insignificant journeys, such as an occasional trip to the tip. Regular shopping or holiday trips make the full charge apply.

Charging an electric van at the company's expense adds no fuel benefit either. The restricted-use test is about how the van is actually used, so keep a record. A van shared by several employees has its charge split between them on a just and reasonable basis.

Is a company van cheaper in tax than a company car?

Usually. In 2026/27 a van is a £4,170 benefit, so a higher-rate driver pays £1,668 Income Tax and the company £625.50 Class 1A. A £40,000 petrol car at 120 g/km is a £12,000 benefit: £4,800 Income Tax and £1,800 Class 1A. Those figures come from this calculator and our car calculator.

A van also gets the annual investment allowance, so the company can deduct its whole cost in the year it buys it; a car can't. Use the company car tax calculator for a car, and the capital allowances calculator for the van's allowances over several years.

What doesn't this calculator cover?

It covers one van, available to one driver, for one tax year. It doesn't cover shared vans, payments the driver makes for private use, Scottish Income Tax rates, VAT, running costs, or whether a vehicle counts as a van or a car. Its figures are general information, not tax advice: check them before you report them.

For the company's whole bill, use the Corporation Tax calculator. If a director owes the company money, try the director's loan s.455 tax calculator. The van's capital allowances are claimed on the company's Company Tax Return (CT600).

Which rules does this calculator follow?

Every figure comes from the rules HMRC and Companies House publish on GOV.UK, and from the legislation behind them. The links below go to the pages we checked when we last reviewed this calculator, so you can read each rule in full and check that it applies to your company.

• HMRC 480 Chapter 14: Benefit charge on company vans available for private use
• GOV.UK: Van benefit charge and fuel benefit charges for cars and vans for tax year 2026 to 2027 (van £4,020 then £4,170; van fuel £769 then £798; nil for zero-emission vans)
• HMRC 480 Chapter 13: Taxable fuel provided for company cars and vans
• GOV.UK: Rates and thresholds for employers 2026 to 2027 (Class 1A 15%)
• GOV.UK: Income Tax rates and Personal Allowances

Frequently asked questions

How much is the van benefit charge in 2026/27?

The van benefit is a flat £4,170 for 2026/27, up from £4,020 in 2025/26. It is the same for every van that can emit CO2, whatever its price or size. A basic-rate taxpayer pays 20% of it in Income Tax and a higher-rate taxpayer 40%, and the employer pays 15% Class 1A National Insurance on it.

Do electric vans have a benefit in kind?

No. Since 6 April 2021 a zero-emission van, one that cannot emit CO2 when driven, has a van benefit of nil. Electricity is not a fuel for the van fuel benefit either, so charging an electric van at the company's expense adds no fuel charge. A hybrid or other van that can emit CO2 is charged the full flat amount.

Do I pay tax on a company van if I only use it to commute?

No. There is no van benefit if the van is mainly for business and private use is limited to commuting between home and work and insignificant journeys, such as taking rubbish to the tip once or twice a year. Weekend trips, holidays or regular shopping make the full charge apply for the year. Keep a record of how the van is used.

How much is the van fuel benefit?

The van fuel benefit is a flat £798 for 2026/27 (£769 in 2025/26). It applies when the company pays for fuel for private journeys in a van that already has a van benefit. It is nil if the driver repays the cost of all private fuel by 6 July after the tax year; repaying only part of it doesn't reduce the charge.

Can the company claim tax relief on the cost of a van?

Yes. A van is not a car for capital allowances, so the company can deduct its whole cost from profits in the year it buys it with the annual investment allowance (up to £1,000,000 a year), or full expensing if it is new. Its running costs are deductible too, and so is the Class 1A National Insurance on the van benefit. Double-cab pick-ups bought from April 2025 are generally cars for capital allowances.

Related free tools

• Corporation Tax calculator: Estimates the Corporation Tax a UK limited company pays on its taxable profits for one accounting period of up to 12 months. Applies the small profits rate, the main rate and marginal relief, with associated companies, short periods and periods that straddle 1 April. A close investment-holding company pays the main rate on all its profits. Returns the tax, the effective rate and the payment and filing dates.
• Corporation Tax deadline calculator: Works out a UK private limited company's Corporation Tax payment date, CT600 filing deadline and Companies House accounts deadline from its accounting period. Accounts longer than 12 months are split into two Corporation Tax periods, each with its own payment date.
• Corporation Tax late filing penalty and interest calculator: Works out HMRC's penalties for filing a UK company's Company Tax Return (CT600) late — the flat £200/£400 penalties for filing deadlines from 1 April 2026 (£100/£200 before then), and the 10% or 20% tax-geared penalty — plus late payment interest on the Corporation Tax at HMRC's published rates.
• All free Corporation Tax tools

Last reviewed 15 October 2026. This calculator gives general guidance, not tax advice.