Example

Worked example

Tax year: 2026-27; Company pays for private fuel: yes; Driver's Income Tax rate: basic. Enter your own details to replace this example.

In 2026/27, a company van available for private use is a £4,170 benefit in kind, plus £798 van fuel benefit because the company pays for private fuel. A basic-rate driver pays £993.60 Income Tax and the company pays £745.20 Class 1A National Insurance. Zero-emission vans have no van benefit charge.

Van benefit (2026/27)

£4,170

Van fuel benefit

£798

Driver's Income Tax (20%)

£993.60

Company's Class 1A National Insurance (15%)

£745.20

Corporation Tax saved on the Class 1A (at 19% to 25%)

£141.59 to £186.30

• There is no van benefit if private use is restricted to commuting and insignificant private journeys, such as a rare trip to the tip. Using the van for weekend or holiday trips makes the full charge apply.
• The van fuel benefit is a flat amount: it applies in full unless the driver repays the cost of all private fuel.
• Without the company's profits, the Corporation Tax saved is shown at the 19% small profits rate and the 25% main rate. Enter the profits for the exact figure.
• Income Tax rates are for England, Wales and Northern Ireland. Scottish taxpayers have different bands and rates.

Sources: 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