Company van
The Van Benefit Charge applies when an employee is provided with a company van and it is used for personal journeys.
The Van Fuel Benefit Charge applies where fuel is provided by the employer to cover private use.
Company car fuel benefit
A director or employee who is provided with a Company Car and receives any free petrol or diesel from their employer for private use is taxed based on the Car Fuel Benefit Charge and the cars CO2 benefit charge percentage.
Electric vehicles
There is no fuel benefit charge in relation to electric vehicles.
Tax Year 2024/2025 charges
As part of the Autumn Statement 2023, the government announced that the van benefit charge and the car and van fuel benefit charges will not rise but be maintained at 2023-2024 levels for 2024-2025.
The rates will remain as:
- Van Benefit Charge of £3,960
- Car Fuel Benefit Charge multiplier £27,800
- Van Fuel Benefit Charge rate of £757
Following last years significant rise, the rates are frozen for the 2024/2025 tax year.
PAYadvice.UK 6/12/2023